Natural Gas and Oil Forecast: WTI Nears $77.50; More Upside Ahead?

Market Overview

Oil prices rose on Monday, recovering from last week’s losses due to heightened tensions in the Middle East. Brent crude increased by 0.4% to $81.46 per barrel, while U.S. West Texas Intermediate (WTI) climbed 0.3% to $77.39 per barrel. The rise follows a rocket strike in the Israeli-occupied Golan Heights, attributed to Hezbollah.

The conflict raises concerns of wider regional instability, impacting oil and natural gas forecasts. Despite fears of escalating tensions, gains were limited by weak Chinese demand, which saw a drop in fuel oil imports by 11% in early 2024. Additionally, U.S. energy firms have increased oil and natural gas rigs, adding complexity to market dynamics.

Natural Gas Price Forecast

Natural Gas (NG) (NG) is currently priced at $2.09, up 2.95%. The pivot point is at $2.08. Key resistance levels are $2.13, $2.17, and $2.22. Support levels are identified at $2.03, $1.99, and $1.95. The 50-day Exponential Moving Average (EMA) is $2.14, while the 200-day EMA is $2.35.

The outlook is bullish above the pivot point of $2.08. Sustained trading above this level may indicate further gains. However, a break below $2.08 could lead to a sharp selling trend, driving prices downward.

WTI Oil Price Forecast

WTI crude oil (USOIL) is currently priced at $77.47, down 1.19%. On the chart, the pivot point is at $77.07. Immediate resistance levels are $78.55, $79.87, and $81.31. Support levels to watch are $76.14, $75.20, and $74.25. The 50-day Exponential Moving Average (EMA) stands at $78.63, while the 200-day EMA is at $80.06.

The bearish outlook remains valid below the $77.07 pivot point. A break above this level could shift the sentiment to bullish, potentially driving prices higher. Conversely, failure to maintain this level could reinforce the bearish bias.

Brent Oil Price Forecast

Brent crude oil (UKOIL) is currently trading at $80.64, up 1.13%. Key price levels include a pivot point at $81.64. Immediate resistance levels are $82.67, $83.41, and $84.45. Support levels are at $79.24, $78.32, and $77.21. The 50-day Exponential Moving Average (EMA) is $82.33, and the 200-day EMA is $83.74.

The outlook remains bullish above the $81.64 pivot point. A sustained move above this level could signal further gains. Conversely, a break below this pivot could trigger a sharp selling trend, driving prices lower.