Natural Gas and Oil Forecast: WTI Dips Below $75.50; Is More Sell-off Coming?

Market Overview

Oil prices fell on Tuesday, continuing their decline from the previous session due to concerns over demand in China, the world’s largest crude importer. Disappointing economic data from China, including a shrinking manufacturing sector and lowered growth forecasts, has shaken markets.

Emril Jamil of LSEG Oil Research noted that weak domestic demand from China and potential OPEC+ output increases are contributing to a bearish outlook. This decline in oil prices also impacts natural gas and oil forecasts by highlighting vulnerabilities in global energy demand.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.064 on the 4-hour chart, up 0.14%. The pivot point at $2.06 is critical for determining market direction. Immediate resistance is found at $2.10, with further resistance levels at $2.16 and $2.21. On the downside, immediate support is at $2.03, followed by $1.98 and $1.94.

Technical indicators show the 50-day Exponential Moving Average (EMA) at $2.12 and the 200-day EMA at $2.33, both above the current price, indicating a bearish trend. However, the outlook turns bullish above the $2.06 pivot. A break below this level could drive a sharp selling trend.

WTI Oil Price Forecast

WTI crude oil (USOIL) is currently trading at $75.43 on the 4-hour chart, showing a decline of 0.59%. The pivot point at $75.94 serves as a critical level for determining market direction.

Immediate resistance levels are noted at $77.59, $78.73, and $80.11, indicating potential upward barriers for the price. On the downside, immediate support is found at $74.63, with further support levels at $73.58 and $72.48, which could act as potential price floors.

Technical indicators suggest mixed signals. The 50-day Exponential Moving Average (EMA) is positioned at $78.09, while the 200-day EMA stands at $79.83. Overall, the analysis points to a bearish outlook as long as the price remains below the pivot point of $75.94.

Brent Oil Price Forecast

Brent crude oil (UKOIL) is trading at $78.65 on the 4-hour chart, down 0.54%. The pivot point at $79.15 is crucial for gauging market direction. Key resistance levels are positioned at $80.81, $81.96, and $83.19. On the downside, immediate support is noted at $77.87, with further support at $76.70 and $75.62.

Technical indicators show the 50-day Exponential Moving Average (EMA) at $81.68 and the 200-day EMA at $83.48, both above the current price, suggesting bearish sentiment. The outlook remains bearish below the $79.15 pivot. A break above this level could shift the bias to bullish while staying below the bearish trend.