Natural Gas and Oil Forecast: WTI Nears $69.50 Amid China Demand Worries – Rebound Ahead?

Market Overview

WTI crude oil futures declined to $69 per barrel, extending a 3% drop due to ongoing demand concerns, especially in China, despite government stimulus efforts.

Supply fears were eased as a hurricane shifted away from key U.S. oil and gas regions, and Libya’s political progress may stabilize oil exports. U.S. crude inventories fell by 4.5 million barrels, more than the expected 1.4 million, providing some support to prices.

However, geopolitical tensions in the Middle East could lead to potential supply disruptions, influencing both oil and natural gas markets, and leaving forecasts uncertain for the near term.

Natural Gas Price Forecast

Natural Gas (NG)s is trading at $2.84, up 0.77%, above the pivot point of $2.81. This upward move shows bullish momentum, with immediate resistance at $2.87, followed by higher targets at $2.91 and $2.96.

On the downside, key support is at $2.77, with additional levels at $2.72 and $2.67. The 50-day Exponential Moving Average (EMA) is currently at $2.64, providing strong support below the price, while the 200-day EMA sits lower at $2.47, signalling longer-term strength.

The outlook remains positive as long as prices stay above $2.81. However, a break below this level could reverse momentum and drive a sharper selling trend. For further bullish confirmation, keep an eye on resistance at $2.87.

WTI Oil Price Forecast

WTI Crude Oil (USOIL) is currently priced at $69.69, down 0.28% for the day. The price is trading below the key pivot point at $69.95, signalling a bearish bias, especially with a violation of an upward trendline. Immediate resistance sits at $70.42, followed by stronger resistance at $70.94 and $71.59.

On the downside, immediate support lies at $69.22, with additional levels at $68.63 and $68.04.

Notably, the 50-day Exponential Moving Average (EMA) stands at $70.59, and the 200-day EMA at $70.42, further reinforcing resistance near $70. As long as the price remains below $70, the downtrend seems likely.

Brent Oil Price Forecast

Brent Crude Oil (UKOIL) is trading at $73.71, down 1.92%, showing weakness below a key pivot point at $73.97. The price is testing support near $73.05, with additional downside levels at $72.45 and $71.91.

A double-bottom pattern around $73 is providing some support, but the 50-day Exponential Moving Average (EMA) at $74.43 is exerting pressure. If UKOIL can break above $73.95, it may trigger a more bullish outlook, with immediate resistance at $74.40 and further upside targets at $75.23 and $75.85. However, staying below $73.95 suggests continued bearish momentum.

In short, the $73.95 level is key: break above it, and we might see a rebound; stay below, and the downtrend likely continues.