Natural Gas and Oil Forecast: WTI Slips Below $83; More Sell-Off Ahead?

By:

Arslan Ali

Updated: Jul 8, 2024, 10:44 GMT+00:00

Key Points:

Oil prices dip as Gaza ceasefire talks and Tropical Storm Beryl approach Texas.
Port closures in Texas may disrupt crude and LNG exports, impacting refinery operations.
WTI gains 2.1% last week on lower stockpiles and potential interest rate cuts.

In this article:

Natural Gas

+0.26%

WTI Oil

+2.31%

Brent Oil

+2.73%

Market Overview

Oil prices dipped on Monday after a four-week rise, driven by potential ceasefire talks in Gaza and Tropical Storm Beryl’s approach to Texas. If the ceasefire in Gaza, mediated by Qatar and Egypt, materializes, it could reduce geopolitical risks and pressure oil prices lower.

Meanwhile, port closures in Texas due to Tropical Storm Beryl might disrupt crude and liquefied natural gas exports, impacting refinery operations and potentially supporting refined product prices.

Despite this, WTI gained 2.1% last week on lower stockpiles and hopes of interest rate cuts, which could boost crude demand.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) is trading at $2.34, up 0.77%. The pivot point is $2.35, crucial for short-term direction. Immediate resistance levels are $2.40, $2.44, and $2.47. Key support is at $2.31, with further support at $2.27 and $2.23.

Technical indicators highlight the 50-day EMA at $2.42 and the 200-day EMA at $2.61, indicating a bearish trend below $2.35.

A break above this level could shift the trend to bullish while staying below suggests continued downward pressure.

WTI Oil Price Forecast

WTI Price Chart

On the 4-hour chart, USOIL is trading at $82.88, slightly down by 0.46%. The pivot point is at $83.18, a critical level to watch. Immediate resistance stands at $83.74, followed by $84.23 and $84.76. Support is seen at $82.40, with further support levels at $82.09 and $81.65.

Technical indicators show the 50-day EMA at $83.22 and the 200-day EMA at $81.47, suggesting a cautious outlook. The trend remains bearish below $83.18, and a break above this level could signal a bullish shift.

Brent Oil Price Forecast

Brent Price Chart

UKOIL is trading at $86.37, down by 0.48%. The pivot point is $86.82, a key level to monitor. Immediate resistance is at $87.33, followed by $87.88 and $88.33. Support is found at $86.12, with further levels at $85.69 and $85.18.

Technical indicators show the 50-day EMA at $86.62 and the 200-day EMA at $85.05, suggesting a bearish outlook below $86.82. A break above this pivot point could signal a bullish trend.

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.

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