Natural Gas and Oil Forecast: WTI Surges Past $77; Iranian Tensions Boost Oil

Market Overview

Oil prices remained steady in Asian trading on Monday, buoyed by reports of a potential Iranian strike on Israel, likely within days. This development heightened concerns over a possible escalation in the Middle East, leading to increased risk premiums on oil due to fears of supply disruptions from the region.

Additionally, encouraging economic data from the U.S. helped ease recession fears, contributing to the stabilization of prices.

The focus this week will be on key inflation data from the U.S., India, and the UK, as well as reports from OPEC and the International Energy Agency, which could impact both oil and natural gas forecasts.

Natural Gas Price Forecast

Natural Gas (NG) is currently trading at $2.205, showing a strong upward movement. The pivot point is at $2.15, serving as a crucial level for maintaining bullish momentum.

Immediate resistance is identified at $2.26, with further resistance at $2.32 and $2.39. On the downside, key support levels are at $2.10, followed by $2.03 and $1.96.

The 50-day Exponential Moving Average (EMA) is positioned at $2.08, below the current price, reinforcing a bullish outlook.

However, the 200-day EMA at $2.22 is slightly above the current price and may act as resistance. A break below the pivot point at $2.15 could trigger a significant downward trend.

WTI Oil Price Forecast

U.S. crude oil futures (USOIL) are currently trading at $77.07, showing slight upward momentum on the day. The pivot point is located at $75.84, which serves as a crucial support level.

Immediate resistance is identified at $77.63, followed by higher resistance levels at $78.85 and $80.18. On the downside, support lies at $74.71, with additional support at $73.71 and $72.56.

The 50-day Exponential Moving Average (EMA) is at $75.70, while the 200-day EMA stands at $77.96. The price hovering above the 50 EMA indicates a bullish trend, but a break below the pivot point at $75.84 could trigger significant selling pressure.

Brent Oil Price Forecast

Brent crude (UKOIL) is currently trading at $79.75, reflecting a slight upward move. The pivot point is set at $78.78, which is critical for maintaining bullish momentum. Immediate resistance is seen at $80.45, with further resistance at $81.60 and $82.68. On the downside, key support levels are at $77.62, followed by $76.19 and $74.99.

The 50-day Exponential Moving Average (EMA) is positioned at $78.81, slightly below the current price, supporting a bullish outlook. However, the 200-day EMA at $81.38 is acting as a resistance ceiling. A break below the pivot point at $78.78 could lead to significant selling pressure.