Natural Gas and Oil Forecast: Will Rising Supply Offset Demand Uncertainty?

Market Overview

Oil prices edged up slightly on Wednesday, driven by supply concerns despite lingering doubts over global demand. Recent geopolitical tensions have stirred potential supply risks, heightening interest in physical market purchases.

However, revised projections from OPEC reflect a slowdown in oil demand growth, particularly due to economic uncertainty in key markets like China. This tempered outlook, coupled with U.S. production increases, is likely to keep oil prices steady, rather than rallying sharply.

Meanwhile, upcoming forecasts from the International Energy Agency could further shape market expectations. A delayed U.S. inventory report is also anticipated, adding another layer of data for investors.

Natural Gas Price Forecast

Natural Gas (NG) prices currently sit at $2.88 on the 4-hour chart. As it hovers near a key pivot at $2.96, the technical indicators suggest a cautious bullish outlook. The 50-day EMA at $2.89 and the 200-day EMA at $2.78 show underlying support for a gradual upward trend.

Immediate resistance lies at $3.00, with further hurdles at $3.05 and $3.10 if momentum picks up. Key support levels stand at $2.88, where the 23.6% Fibonacci level could act as a springboard for buyers.

If prices hold above $2.88, it could spark further gains, but a drop below this line could invite a stronger selling wave.

WTI Oil Price Forecast

USOIL prices are trading at $68.26, marking a modest 0.50% gain on the 4-hour chart. With a pivot point at $67.77, the current trend leans slightly bullish as long as prices stay above this level.

Immediate resistance at $68.80 could provide the next hurdle, with further barriers at $69.49 and $70.41 if momentum continues.

The 50-day EMA at $68.69 offers close-range support, but the 200-day EMA at $69.89 suggests there’s still work for buyers if oil is to push higher.

On the downside, support sits at $67.11 and then at $66.55, forming a cushion against sharper drops. Holding above $67.77 keeps the outlook positive, but a dip below could invite a sharper pullback.

Brent Oil Price Forecast

UKOIL is trading at $72.05, up a slight 0.47% on the 4-hour chart. Sitting just above the pivot at $71.97, the trend has a cautiously bullish tilt, as long as it holds this level.

The immediate resistance at $72.57 is the next test for buyers, with further upside likely if oil can reach $72.94 and $73.42.

The 50-day EMA at $72.45 offers nearby support, suggesting that momentum might strengthen if prices stay above it. Meanwhile, the 200-day EMA at $73.50 signals a higher threshold to beat.

On the downside, support rests at $71.54, giving way to further cushions at $71.10 and $70.69. A dip below $71.97 could shift the trend bearish.