Natural Gas and Oil Forecast: WTI’s Fate Hinges on $75.40—Can It Overcome Bearish Pressure?

Market Overview

Oil prices surged on Monday amid escalating fears of a broader Middle East conflict. The potential for supply disruptions in the region, coupled with U.S. interest rate cuts signaled by Federal Reserve Chair Jerome Powell, boosted global economic sentiment and fuel demand outlook.

Analysts expect crude prices to continue their upward momentum, with WTI possibly reaching $80. However, despite these gains, last week’s oil prices declined due to weak economic outlooks.

The U.S. Energy Department’s recent purchase of 2.5 million barrels for the Strategic Petroleum Reserve further underscores supply concerns. This geopolitical tension and economic outlook also suggest potential volatility in natural gas prices.

Natural Gas Price Forecast

Natural Gas (NG) recently broke below an upward trendline near the $2.03 level, signaling a potential shift toward a bearish trend. This breakout suggests that NG could continue to decline, with immediate support at $1.98 and further downside targets at $1.94 and $1.90.

The 50 EMA at $2.10 and the 200 EMA at $2.14 are both in the selling zone, indicating that bearish sentiment remains strong. A retest of the $2.03 level, now acting as resistance, could further confirm the downward bias.

Conclusion: Bearish below $2.04; a break above this level could shift momentum toward a more bullish outlook.

WTI Oil Price Forecast

WTI crude oil (USOIL) is trading close to the pivotal $75.40 mark, where the 200 EMA is capping further upside. This level is crucial, as it could dictate the next move for crude oil prices. A bearish engulfing candle has formed on the 4-hour chart, signalling potential downside pressure.

Immediate support lies at $73.94, with further support at $72.75 and $71.51. On the upside, breaking above the $75.40 level could see prices challenge resistance at $76.47, $77.38, and possibly $78.30.

Conclusion: Bearish bias below $75.40; a breakout above this level may spark further bullish momentum.

Brent Oil Price Forecast

Brent oil (UKOIL) is currently trading just below its pivot point at $79.64, with the 200 EMA acting as a significant resistance at $79.13. A bearish engulfing candle on the 4-hour chart suggests that selling pressure may increase, potentially pushing prices lower.

Immediate support is found at $78.72, with further downside targets at $77.67 and $76.86. However, if prices manage to break above the $79.64 level, the bullish momentum could drive prices toward resistance levels at $80.37, $81.34, and $82.33.

Conclusion: Bearish sentiment prevails below $79.64; a break above this level may trigger further bullish action.