Natural Gas and Oil Forecast: WTI at $75.76, More Upside Ahead or Sell-Off?

By:

Arslan Ali

Updated: Jun 10, 2024, 06:27 GMT+00:00

Key Points:

Oil prices rise modestly on Monday, driven by expectations of higher summer fuel demand despite a strong U.S. dollar.
Upcoming Federal Reserve and Bank of Japan meetings may introduce volatility, affecting oil and natural gas market dynamics.
Analysts predict Brent crude could reach $86 a barrel in Q3, signaling potential shifts in oil and gas forecasts.

In this article:

Natural Gas

+0.26%

WTI Oil

+2.31%

Brent Oil

+2.73%

Market Overview

Oil prices saw a modest increase on Monday, influenced by the anticipation of higher summer fuel demand and a strong U.S. dollar, which surged following unexpectedly robust U.S. job data. This strengthening of the dollar, combined with political uncertainties in the Eurozone after French elections, makes oil more costly for non-dollar holders, potentially dampening demand.

The upcoming Federal Reserve and Bank of Japan meetings could introduce further volatility, affecting oil and natural gas markets as they adjust to global financial cues. Moreover, OPEC+ faces pressure regarding their production cuts, with the market speculating on their next moves.

Energy analysts expect a tightening in oil inventories could push Brent crude prices to around $86 a barrel in the third quarter, signaling a potentially significant shift in the oil and natural gas price forecast as the sector navigates through these complex economic and geopolitical landscapes.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.985, up 1.74% today. On the 4-hour chart, the pivot point is at $3.00, a crucial level for determining market direction. Immediate resistance levels are $3.08, $3.17, and $3.25. On the downside, immediate support is at $2.89, followed by $2.79 and $2.69.

Technical indicators show the 50-day Exponential Moving Average (EMA) at $2.74 and the 200-day EMA at $2.45. The current price above these averages suggests potential near-term bullish momentum.

Natural Gas remains bearish below $3.00. A sustained break above this level could signal a shift to a bullish trend.

WTI Oil Price Forecast

USOIL is currently trading at $75.67, marking an increase of 0.37% in today’s session. The pivot point is positioned at $76.18, a crucial level for determining market direction. Immediate resistance is noted at $77.00, with further resistance levels at $77.89 and $78.59.

On the downside, immediate support is found at $74.96, followed by $74.02 and $72.88, which are potential buying zones if the price declines further.

The technical indicators show the 50-day Exponential Moving Average (EMA) at $75.78, suggesting near-term price stability. The 200-day EMA, situated at $78.22, indicates a more significant resistance level that could cap longer-term gains. Given these conditions, USOIL remains bearish below the pivot point of $76.18

Brent Oil Price Forecast

UKOIL is currently trading at $79.79, up 0.33% for the day. The 4-hour chart indicates several key levels to watch. The pivot point is set at $80.19. Immediate resistance levels are $80.91, $81.62, and $82.66.

On the support side, immediate support is at $79.18, followed by $78.34 and $77.19. Technical indicators include the 50-day Exponential Moving Average (EMA) at $80.01 and the 200-day EMA at $82.59.

The proximity of the 50 EMA to the current price suggests potential near-term stability, while the 200 EMA indicates significant resistance ahead.

UKOIL is bearish below $80.19, with a break above this level potentially shifting the trend to bullish.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Arslan Aliauthor

Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.

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