Natural Gas and Oil Forecast: Will OPEC+ Production Boost Trigger a Market Reversal?

Market Overview

Oil prices recovered a bit on Tuesday. However, investors weighed the planned increase in OPEC+ production against reduced output from Libya and weak demand in China. The U.S. OPEC+ is set to boost production by 180,000 barrels per day in October, despite ongoing economic challenges in major oil-consuming countries.

The combination of sluggish demand and rising geopolitical tensions has contributed to a bearish outlook for oil, with both Brent and WTI experiencing consecutive monthly losses.

The impact of these developments suggests potential downside risks for Natural Gas and Oil forecasts, driven by economic uncertainties and oversupply concerns.

Natural Gas Price Forecast

The current price of Natural Gas (NG) is $2.2770, showing a slight decline of 0.22% in the past 4 hours. The market is just above the $2.148 pivot point, a key level to watch. If the price remains above this pivot, the bullish momentum will likely continue, with resistance levels at $2.195, $2.228, and $2.279.

On the downside, immediate support is at $2.094, with stronger supports at $2.042 and $1.996. Technical indicators suggest the 50-day EMA at $2.129 and the 200-day EMA at $2.115 provide additional support.

The trend remains bullish as long as prices stay above $2.148, but a break below could trigger a significant sell-off.

WTI Oil Price Forecast

U.S. crude oil (USOIL) is trading at $74.04, showing a modest gain of 0.04% in the last 4 hours. The price is currently hovering below the pivot point at $74.11, a critical level for determining the next move.

If USOIL breaks above this pivot, it could open the door for further gains, with resistance levels at $75.00, $76.00, and $76.89. On the downside, immediate support lies at $72.89, with additional support at $71.92 and $70.63.

The 50-day EMA at $74.43 and the 200-day EMA at $75.20 act as resistance, suggesting a cautious approach. The trend remains bullish above $74.11, but slipping below this level might trigger a sell-off.

Brent Oil Price Forecast

UK Brent oil (UKOIL) is trading at $77.39, up 0.17% over the past 4 hours. The price is slightly below the pivot point at $77.49, a critical level that could determine the next direction.

If UKOIL breaks above this pivot, it could challenge resistance at $77.96, $78.52, and $79.35. However, a series of Doji candles suggest that bullish momentum is weakening.

Immediate support is $76.74, with additional levels at $76.20 and $75.60. The 50-day EMA at $77.86 and the 200-day EMA at $78.82 act as overhead resistance. The trend remains cautiously bullish above $77.49, but a break below this level could trigger a sharp sell-off.