Natural Gas and Oil Forecast: WTI Jumps to $75.70 Amid OPEC+ Updates; More Upside?

By:

Arslan Ali

Updated: Jun 7, 2024, 09:10 GMT+00:00

Key Points:

Oil prices increased slightly on OPEC+ assurances but face a third weekly loss.
OPEC+ extended production cuts into 2025, with gradual unwinding of voluntary cuts.
Lower U.S. interest rates could boost oil demand and influence energy markets.

In this article:

Natural Gas

+0.26%

WTI Oil

+2.31%

Brent Oil

+2.73%

Market Overview

Oil prices increased slightly on Friday following assurances from OPEC+ members Saudi Arabia and Russia about their readiness to pause or reverse output agreements. Despite these gains, markets are set for their third consecutive week of losses.

OPEC+ agreed to extend most production cuts into 2025, with voluntary cuts from eight members being unwound gradually. This led to initial price rallies, but concerns about rising supply continue to weigh on the market.

These developments have significant implications for the natural gas and oil forecast, as stability in oil prices can influence energy markets and investor sentiment. Lower interest rates, expected from the U.S. Federal Reserve, could also boost oil demand, further impacting prices.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) is trading at $2.83, up 0.88% on the four-hour chart. The pivot point at $2.78 is crucial for today’s trading. Immediate resistance levels are at $2.92, $3.01, and $3.08. On the downside, immediate support is at $2.69, followed by $2.59 and $2.48.

Technical indicators show the 50-Day Exponential Moving Average (EMA) at $2.69, while the 200-Day EMA stands at $2.42. These indicators suggest a bullish outlook above the pivot point of $2.78.

Conclusion: NG remains bullish above $2.78. However, a break below this level could trigger a sharp selling trend.

WTI Oil Price Forecast

WTI Price Chart

USOIL is trading at $75.69, up 0.13% on the four-hour chart. The pivot point at $76.15 serves as a critical level for today’s trading. Immediate resistance levels are at $77.10, $77.96, and $78.70. On the downside, immediate support is found at $74.91, with further support at $74.02 and $72.90.

Technical indicators show the 50-Day Exponential Moving Average (EMA) at $75.82, while the 200-Day EMA stands at $78.38. The Relative Strength Index (RSI) should also be monitored for any overbought or oversold conditions.

Conclusion: USOIL remains bearish below $76.15. A break above this pivot point could signal a bullish trend continuation.

Brent Oil Price Forecast

Brent Price Chart

UKOIL is trading at $79.98, down 0.04% on the four-hour chart. The pivot point at $80.19 is crucial for today’s trading. Immediate resistance levels are at $80.91, $81.62, and $82.66. On the downside, immediate support is at $79.18, followed by $78.34 and $77.19.

Technical indicators show the 50-Day Exponential Moving Average (EMA) at $80.08, while the 200-Day EMA stands at $82.76. The Relative Strength Index (RSI) should also be monitored for potential overbought or oversold conditions.

Conclusion: UKOIL remains bearish below $80.19. A break above this level could indicate a bullish trend, while failure to surpass it may lead to further downside pressure.

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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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