Natural Gas, WTI Oil, Brent Oil Forecasts – Double-Top Formation Capping NatGas

Natural Gas

Natural gas futures fell on Friday as traders assessed weather patterns, storage levels, and production rates. The market, hovering near $2.625, faces potential declines if production increases and temperatures moderate. This could confirm a bearish double top chart pattern on the daily chart. Earlier gains reversed midday, reflecting ongoing uncertainty about supply and demand fundamentals. Mixed cash prices ahead of the July Fourth holiday added to the volatility, highlighting the market’s fragile state and the influence of short-term factors on trading decisions.

Natural gas futures are trading at $2.598, down 3.24%. The chart shows resistance at $2.850 and $3.020, with support around $2.551 and $2.500. The 50-day SMA is at $2.464. The RSI is at 45.95, indicating potential oversold conditions. A break below $2.625 could trigger further declines, possibly confirming a bearish double top pattern.

WTI Crude Oil

WTI crude prices fell by 18 cents, settling at $81.56 a barrel, reflecting a 0.22% drop. The dip was influenced by weak U.S. gasoline demand, which fell to 8.83 million barrels per day, the lowest since February. Additionally, the Energy Information Administration’s report indicated that April saw a rise in overall U.S. oil production and demand. Analysts cited profit-taking at quarter-end as a factor. Despite the decline, WTI futures posted a 6% monthly gain.

WTI crude oil is trading at $81.27, down 0.60%. Resistance levels are observed at $83.53 and $84.52. Support levels are at $80.03, $79.16 (50-day SMA), and $79.06. The RSI is at 58.28, indicating moderate buying pressure. The current price is above the 50-day SMA, suggesting an uptrend. A breakout above $84.52 could signal further gains, while a drop below $79.06 may indicate a potential reversal.

Brent Crude Oil

Brent crude futures for August rose by 6 cents to $86.45 per barrel, while the September contract fell 0.25% to $85.05. Brent was set for a modest weekly gain and a 6% rise for the month. Market sentiment was buoyed by the prospect of Federal Reserve interest rate cuts, with inflation data showing stability. Despite geopolitical risks and varied supply concerns, Barclays projects Brent prices will stay around $90 in the coming months.

Brent crude oil is trading at $84.77, down 0.71%. Resistance levels are at $88.02 and $88.93. Support levels are at $84.45, $83.49 (50-day SMA), and $81.07. The RSI is at 55.79, indicating moderate buying pressure. The current price is above the 50-day SMA, suggesting a potential uptrend. A breakout above $88.93 could signal further gains, while a drop below $83.49 may indicate a potential reversal.