Natural Gas and Oil Forecast: Oil Dips Over 3% as Middle East Tensions Ease

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Market Overview

Oil prices have stabilized following a 3% decline, with Brent crude at $87.59 per barrel and West Texas Intermediate (WTI) at $82.32, as fears of a broader Middle East conflict lessen. The market is adjusting to lower than expected fuel demand and growing U.S. oil inventories, signaling a potential downturn in economic activity, particularly in China.

Meanwhile, natural gas forecasts are indirectly affected by these developments, given the interconnected nature of energy markets. The reduced likelihood of a severe escalation between Israel and Iran is alleviating concerns about supply disruptions from a key oil-producing region.

Analysts note that global oil consumption is trailing predictions, with a significant reduction in expected demand growth since the start of the year.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) prices today have climbed to $1.9520, marking an increase of 1.72%. The commodity is trading above its pivot point at $1.91, indicating a bullish stance in the short term. Resistance levels are mapped out at $1.99, $2.04, and $2.08.

Conversely, should downward pressure emerge, support can be found at $1.85, followed by $1.78 and $1.72. The technical setup is reinforced by the 50-day Exponential Moving Average (EMA) at $1.91 and the 200-day EMA closely aligned at $1.90, supporting the current price.

A move below $1.91 could trigger a significant sell-off, suggesting a critical watch point for traders.

WTI Oil Price Forecast

WTI Price Chart

USOIL sees a slight increase today, trading at $82.32, up by 0.04%. Positioned close to its pivot point at $82.53, the market might be at a critical juncture. Resistance levels are set at $83.98, $86.11, and $87.63, while support figures are $80.52, followed by $78.86 and $76.85.

The RSI suggests neutral momentum. With the 50-day EMA at $84.82 and the 200-day EMA at $82.58, there’s a slight bearish undertone. Should prices fall below $82.53, a significant sell-off could be triggered.

Brent Oil Price Forecast

Brent Price Chart

UKOIL has edged up today, posting a modest increase to $87.59, marking a gain of 0.17%. The commodity currently trades just above its pivot point of $87.13. Looking ahead, resistance levels are noted at $88.68, $90.09, and $91.83. On the downside, support is found at $85.79, with further levels at $84.63 and $82.94.

Technical indicators reveal a bullish sentiment above the pivot, underscored by the 50-day EMA at $89.41, suggesting potential resistance, and the 200-day EMA at $86.99, indicating strong underlying support. A drop below $87.13 could trigger a marked sell-off, shifting the market trend.

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

This article was originally posted on FX Empire


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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