Natural Gas and Oil Forecast: WTI Nears $83.50; Bearish Correction Ahead?

Market Overview

Oil prices remained steady near two-month highs on Tuesday, influenced by expectations of increased fuel demand during the summer and potential U.S. interest rate cuts to stimulate economic growth.

Vandana Hari of Vanda Insights noted that oil price movements are more driven by sentiment and geopolitical fears, particularly due to the possible escalation of tensions between Israel and Iran, and the impact of Hurricane Beryl. The hurricane poses a threat to oil production in Mexico’s Bay of Campeche after hitting the Caribbean as a severe storm.

Meanwhile, in the U.S., gasoline demand is set to increase as travel is expected to rise significantly during the Independence Day holiday. However, softening demand in Asia and reduced imports by China are tempering oil price gains.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.46, marking a decrease of 0.44%. Analyzing the 2-hour chart, the current pivot point is precisely at $2.46. Resistance levels are set at $2.53, $2.59, and $2.64, respectively. On the downside, immediate support can be found at $2.42, with further support levels at $2.36 and $2.32.

Technical indicators suggest a bearish sentiment. The 50-day Exponential Moving Average (EMA) is at $2.63, and the 200-day EMA is higher at $2.74, both above the current price.

In conclusion, the outlook for Natural Gas is bearish below $2.46. A move above this pivot could suggest a shift towards a more bullish trend, while failure to surpass it may reinforce bearish pressures.

WTI Oil Price Forecast

Today, USOIL is priced at $83.47, reflecting a modest increase of 0.14%. Analyzing the 4-hour chart, the pivot point is located at $83.59. Resistance levels are observed at $84.00, followed by $84.28, and then $84.61.

On the downside, immediate support can be found at $83.14, with additional support levels at $82.86 and $82.40.

Technical indicators signal caution. The 50-day Exponential Moving Average (EMA) is positioned at $82.03, suggesting support below current prices, while the 200-day EMA, at $80.29, indicates a longer-term bullish trend. In conclusion, the market stance on USOIL is bearish, below $83.59.

Brent Oil Price Forecast

UKOIL is currently priced at $86.78, showing a modest increase of 0.18%. On the 2-hour chart, the pivotal point is marked at $86.86. The immediate resistance level is at $87.40, followed by subsequent resistance at $87.87 and $88.27. Support is found at $86.16, with further support at $85.69 and $85.15.

Technical indicators provide a mixed outlook. The 50-day Exponential Moving Average (EMA) stands at $85.46, supporting bullish sentiments, while the 200-day EMA at $84.08 underscores a sustained upward trend. In conclusion, UKOIL displays a bearish trend below $86.86.