Natural Gas and Oil Forecast: WTI Falls to $73; Will the Downtrend Persist?

Market Overview

Oil prices dropped over $2 per barrel on Monday, driven by optimism around Middle East peace talks, which could ease supply risks, and concerns over weakening demand from China. U.S. Secretary of State Antony Blinken emphasized the urgency of ongoing ceasefire negotiations in Gaza, marking them as a critical opportunity.

Additionally, China’s economic struggles, including a sharp decline in new home prices and reduced refinery activity, added downward pressure.

As a result, both crude benchmarks saw a nearly 2% decline, impacting the outlook for natural gas and oil, with potential for further price drops if these trends continue.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.232, with a slight decline of 0.72%. The pivot point to monitor is $2.21, with immediate resistance levels at $2.29, $2.35, and $2.41. On the downside, key support levels are at $2.11, $2.05, and $1.99. The 50-day EMA is at $2.17, while the 200-day EMA is aligned with the pivot at $2.21.

A triple top pattern is forming resistance near the $2.29 mark. A bullish breakout above this level could push NG towards the $2.34 level. The upward trendline further supports the buying trend.

Bullish above $2.21, but watch for a break below this level, which could signal a sharp selling trend.

WTI Oil Price Forecast

WTI Crude Oil (USOIL) is currently trading at $73.01, showing a decline of 0.95%. The key pivot point to watch is $73.92. Immediate resistance levels are at $75.29, $76.49, and $78.00, while support is found at $71.68, $70.59, and $69.26. The 50-day Exponential Moving Average (EMA) is currently at $76.19, and the 200-day EMA stands at $77.64.

The recent bearish breakout below the upward trendline suggests a potential for further downside. This could lead to a sharp sell-off towards the next support area.

Given this setup, it may be prudent to consider selling below $73.92. However, if prices break above this level, a bullish bias may emerge. Bearish below $73.92, with potential for bullish momentum if this level is breached.

Brent Oil Price Forecast

Brent Oil (UKOIL) is trading at $77.00, reflecting a 0.89% decline. The pivot point to watch is $77.82, with immediate resistance at $78.79, $79.71, and $81.41. On the downside, key support levels are at $76.23, $75.10, and $74.06. The 50-day EMA stands at $79.53, while the 200-day EMA is at $80.99.

The recent bearish breakout below the upward trendline suggests further downside potential, with the possibility of a sharp sell-off towards the next support area.

Given the technical setup, selling below $77.82 could be a strategic move. However, if prices rise above this level, a shift to a bullish bias may occur. Bearish below $77.82, with potential for bullish momentum if this level is breached.