Advertisement
Advertisement
Natural Gas and Oil Forecast: WTI Nears $79.50; Upward Channel to Drive Buying
By:
Key Points:
- Oil prices fell in Asian trade on Tuesday amid global demand growth concerns.
- Higher crude inventories and refined storage were noted in the U.S. and Singapore.
- China's refinery output decreased 1.8% in May due to maintenance and high costs.
Oil prices dipped in Asian trade on Tuesday, reversing gains from the previous session as market sentiment turned cautious due to concerns over global demand growth amid expectations of increased supplies.
Francisco Blanch, a commodity strategist at Bank of America, noted higher global crude oil inventories and refined product storage in the U.S. and Singapore. Global oil demand growth slowed to 890,000 barrels per day in the first quarter, with further deceleration likely in the second quarter.
China’s refinery output dropped 1.8% year-on-year in May due to maintenance and high crude costs. These factors are expected to impact both Natural Gas and Oil forecasts, highlighting potential stagnation in supply growth and tempered demand outlooks.
Natural Gas Price Forecast
Natural Gas (NG) is trading at $2.816. The pivot point, indicated by the green line, is at $2.844. Immediate resistance levels are $2.913, $2.999, and $3.089. On the downside, immediate support is found at $2.745, with subsequent support levels at $2.653 and $2.575.
The 50-day Exponential Moving Average (EMA) is at $2.881, and the 200-day EMA is at $2.604, both providing significant support.
The price movement suggests a cautious outlook with potential for upward movement if it breaks above the pivot point of $2.844. Overall, the trend remains moderately bullish, supported by the EMA levels.
WTI Oil Price Forecast
WTI Crude Oil (USOIL) is currently trading at $79.57. The pivot point, marked by the green line, is at $79.29, serving as a critical indicator for short-term price direction. Immediate resistance levels are seen at $80.58, $81.25, and $81.91, posing significant barriers to further upward movement.
On the downside, immediate support is identified at $77.95. If this level is breached, the next support levels are at $77.23 and $76.23, providing key levels to watch for potential declines. The 50-day Exponential Moving Average (EMA) at $77.88 and the 200-day EMA at $78.25 offer additional support and indicate a potential buying trend.
Overall, the outlook for WTI Crude Oil remains bullish above the pivot point of $79.29, reinforced by the presence of an upward channel.
Brent Oil Price Forecast
Brent Oil (UKOIL) is trading at $84.10 with pivot point at $84.45. Immediate resistance levels are $85.00, $85.73, and $86.29. On the downside, immediate support is found at $82.65, with subsequent support levels at $81.88 and $81.25.
The 50-day Exponential Moving Average (EMA) is at $82.14, providing significant support, while the 200-day EMA is at $82.57, reinforcing the bullish trend. The upward channel indicates a potential continuation of the uptrend, particularly if prices remain above $84.45.
For a look at all of today’s economic events, check out our economic calendar.
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.
Did you find this article useful?
Latest news and analysis
Advertisement