Natural Gas and Oil Forecast: WTI Supported Near $83.50; Buy Today?

By:

Arslan Ali

Published: Jul 5, 2024, 06:12 GMT+00:00

Key Points:

Brent crude surpasses $87, highest since April, due to a 12.2M barrel inventory draw.
Geopolitical tensions in Gaza and elections in France and UK influence market sentiments.
Weak U.S. economic data hint at potential Fed rate cuts, supporting oil prices.

In this article:

Natural Gas

+0.26%

WTI Oil

+2.31%

Brent Oil

+2.73%

Market Overview

Oil prices for Brent crude reached their highest level since April, exceeding $87 after the U.S. Energy Information Administration (EIA) reported a significant inventory drawdown of 12.2 million barrels, surpassing analysts’ expectations of 680,000 barrels.

This rise is influenced by geopolitical tensions and the ongoing conflict in Gaza. Market participants are also tracking elections in France and the UK.

Meanwhile, weak economic data, including a rise in U.S. unemployment claims and a drop in German industrial orders, suggest potential interest rate cuts by the Federal Reserve, which could support oil prices.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) is trading at $2.354, down 1.26%. On the 2-hour chart, the pivot point is $2.39. Immediate resistance levels are $2.44, $2.47, and $2.51, while support levels are $2.34, $2.31, and $2.27.

Technical indicators show the 50 EMA at $2.46 and the 200 EMA at $2.64, indicating a bearish trend below $2.39. A break above this level could shift the bias to bullish.

WTI Oil Price Forecast

WTI Price Chart

USOIL is currently trading at $83.64, down 0.42%. On the 2-hour chart, the pivot point is $83.50. Immediate resistance levels are $84.11, $84.76, and $85.32, while support levels are $82.98, $82.40, and $81.89.

Technical indicators show the 50 EMA at $83.12 and the 200 EMA at $81.22, suggesting a bullish trend. However, a break below $83.50 could trigger significant selling pressure.

Brent Oil Price Forecast

Brent Price Chart

UKOIL is trading at $87.10, down 0.47%. On the 2-hour chart, the pivot point is $86.89. Immediate resistance levels are $87.54, $87.94, and $88.33, while support levels are $86.47, $86.12, and $85.69.

Technical indicators place the 50 EMA at $86.47 and the 200 EMA at $84.81, indicating a bullish trend. However, a break below $86.89 could lead to significant selling pressure.

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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