Natural Gas and Oil Forecast: WTI Nears $81.50; Will the Sell-Off Continue?

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Updated: Jun 20, 2024, 09:44 GMT+00:00

Key Points:

Oil prices dipped Wednesday from seven-week highs due to summer demand optimism and geopolitical tensions.
Brent crude fell 0.1% to $85.27 per barrel; WTI dropped 0.1% to $81.47 per barrel.
U.S. crude inventories unexpectedly rose by 2.264 million barrels, impacting oil and natural gas forecasts.

Natural Gas and Oil Forecast: WTI Nears $81.50; Will the Sell-Off Continue?

Market Overview

Oil prices declined on Wednesday after reaching seven-week highs, influenced by summer demand optimism and geopolitical tensions. Brent crude futures fell by 0.1% to $85.27 per barrel, while U.S. West Texas Intermediate (WTI) dropped by 0.1% to $81.47 per barrel.

Despite earlier highs of $85.84 for Brent and $81.96 for WTI, thin trading due to a U.S. federal holiday contributed to the dip. A report from the American Petroleum Institute indicated an unexpected rise in U.S. crude stocks by 2.264 million barrels, against expectations of a 2.2-million barrel draw.

This development impacts both oil and natural gas forecasts, suggesting potential volatility and supply concerns.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) is currently trading at $2.90, down 1.01%. The 4-hour chart highlights a pivot point at $2.92, which is crucial for determining the next price movement. Immediate resistance is observed at $2.95, followed by $2.98 and $3.02.

On the downside, immediate support is at $2.87, with further support levels at $2.83 and $2.79. The 50-day Exponential Moving Average (EMA) is at $2.89, while the 200-day EMA stands at $2.82.

The overall outlook remains bearish, below $2.92. However, a break above this level could enhance bullish momentum.

WTI Oil Price Forecast

WTI Price Chart

USOIL is currently trading at $80.46, showing a 0.76% increase. The chart timeframe is 4 hours, providing a detailed view of short-term price movements. The pivot point at $80.67 is crucial for determining the next direction of the market.

Immediate resistance is identified at $81.11, with subsequent resistance levels at $81.51 and $81.91. On the downside, immediate support is found at $79.98, followed by $79.50 and $79.14. These support levels will help prevent further declines in price.

The technical indicators show the 50-day Exponential Moving Average (EMA) at $79.64 and the 200-day EMA at $78.17. In conclusion, the outlook for USOIL remains bearish below the $80.67 pivot point.

Brent Oil Price Forecast

Brent Price Chart

UKOIL is currently trading at $85.05, up 0.54%. The 4-hour chart shows key price levels with a pivot point at $84.98, crucial for determining market direction. Immediate resistance is at $85.28, followed by $85.79 and $86.13. Immediate support is noted at $84.72, with further support at $84.44 and $84.10.

Technical indicators show the 50-day Exponential Moving Average (EMA) at $83.96 and the 200-day EMA at $82.43, indicating strong support levels. The outlook for UKOIL remains bearish below $84.98. However, a break above this level could increase bullish momentum.

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About the Author

Arslan Aliauthor

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.