Natural Gas, WTI Oil, Brent Oil Forecasts – Riding the Wave: US Sanctions and Tight Stockpiles Fuel the Surge

Key Insights

• US sanctions against Russian oil exports intensify market responses, underlining geopolitical influences on prices.
• Brent Oil remains bullish above $88.25, with significant potential to test higher resistance levels in the near future.
• WTI’s positive surge signifies strong upward momentum, emphasizing the role of technical indicators in predicting market movement.

The U.S. sanctioned tankers carrying Russian oil above the G7’s $60 cap, aiming to penalize Moscow for the Ukraine invasion. While Russia’s significant oil exports face increased U.S. oversight, Brent and WTI saw weekly gains of 5.4% and 3.8% respectively.

Natural Gas

On October 13, Natural Gas (NG) showcased a bearish temperament, trading at $3.40, marking a 2.40% decline on a 4-hour chart timeframe. The pivot point is determined at $3.26, while key resistances stand at $3.62, $3.81, and $4.17. Supports, on the other hand, are positioned at $3.06, $2.71, and $2.51, respectively.

From a technical indicator perspective, the Relative Strength Index (RSI) rests at 51, signalling a slightly bullish sentiment. The Moving Average Convergence Divergence (MACD) stands at -0.0193, crossing below its signal line of 0.027, hinting at potential downward momentum.

Further, the price is slightly above the 50-day Exponential Moving Average (EMA), which is priced at $3.3566, indicating a short-term bullish tendency. Conclusively, the trend for Natural Gas is bullish if it remains above $3.35, but it teeters on the brink. In the short term, a test of immediate resistance levels might be on the horizon.

WTI Oil

WTI Crude Oil (WTI) demonstrated significant strength on October 13, skyrocketing to $86, which equates to a 3.50% surge on a 4-hour chart timeframe. The pivot point for this asset settled at $85.38. Immediate resistance and subsequent levels stand at $89.14, $95.72, and $99.57. On the downside, the asset has supports at $78.80, $75.14, and $68.66.

The Relative Strength Index (RSI) is currently at 60, indicating a bullish sentiment. MACD values are bullish as well, with the MACD line (0.27) crossing above its signal line (-0.16), suggesting strong upward momentum.

Notably, the price is just above the 50-day Exponential Moving Average (EMA) valued at $85.52. The charts depict a bullish engulfing pattern and a 50 EMA crossover at $85.50. WTI Oil also faces a challenge near the double-bottom pattern resistance at $86.90.

In conclusion, WTI Oil’s trend remains bullish above $85.52. In the short term, we could expect WTI to test higher resistances.

Brent Oil

Brent (UKOIL) has been exhibiting a bullish drive on October 13, successfully breaking out of its downward channel at $88 and currently trading at $89.75. This represents a commendable rise of 4.25% on Friday, based on the 4-hour chart timeframe.

The key pivot point stands at $88.15. Brent faces immediate, subsequent resistances at $91.05, $93.11, and $95.38, while supports are anchored at $85.09 and twice at $83.52. The Relative Strength Index (RSI) is currently at 65, suggesting a bullish sentiment.

Furthermore, the MACD line, valued at 0.35, has crossed above its signal line at 0.18, indicating potential upward momentum. The price is notably trading above the 50-day Exponential Moving Average (EMA) of $87.61.

Chart patterns have revealed a downward channel breakout at $88, a bullish crossover above the 50 EMA, and a bullish engulfing pattern on the 4-hour timeframe.

In conclusion, Brent Oil’s trend remains bullish as long as it’s above $88.25, and in the near term, it’s anticipated to test the higher resistance levels.

For a look at all of today’s economic events, check out our economic calendar.