Natural Gas and Oil Forecast: Uptrend Supports WTI at $80.68; Buy Now?

 

Key Points:

• Oil prices rise amid geopolitical risks and anticipated Q3 inventory drawdowns.
• Analysts project a 1.5 million barrels per day deficit in Q3 due to OPEC+ cuts.
• Natural gas prices face short-term pressures from a stronger dollar and bearish inventory data.

In this article:

• Natural Gas

  -2.57%

• WTI Oil

  -0.45%

• Brent Oil

  -0.30%

Market Overview

Oil prices rose during Asian trade on Wednesday, driven by Middle East geopolitical risks and anticipated inventory drawdowns in the peak third quarter demand season.

Despite a surprising increase in U.S. stockpiles, market sentiment remains bullish, expecting demand to offset supply concerns. Analysts project a 1.5 million barrels per day deficit in the third quarter due to OPEC+ cuts and seasonal demand.

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This outlook supports both natural gas and oil prices, despite short-term pressures from a stronger dollar and bearish inventory data.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart

Natural Gas (NG) is trading at $2.85, down 0.04%. The 4-hour chart indicates a pivot point at $2.82, crucial for market direction. Immediate resistance levels are at $2.88, $2.94, and $3.00.

Immediate support is at $2.78, followed by $2.70 and $2.64. Technical indicators show the 50-day EMA at $2.81 and the 200-day EMA at $2.66, suggesting a cautious outlook.

The overall trend remains bearish below the pivot point of $2.82. However, breaking above this level could boost bullish momentum, while staying below may continue the selling pressure.

 

WTI Oil Price Forecast

WTI Price Chart

WTI Crude Oil (USOIL) is currently trading at $81.27, up 0.62%. The 4-hour chart reveals a pivot point at $80.68, which is crucial for determining the market direction. Immediate resistance is at $81.80, followed by $82.35 and $83.05.

On the downside, immediate support is at $80.23, with further levels at $79.52 and $78.76. Technical indicators show the 50-day EMA at $80.25 and the 200-day EMA at $79.05, indicating a bullish trend.

Overall, maintaining a position above the pivot point of $80.68 supports a bullish outlook, while a break below this level could trigger a sharp selling trend.

Brent Oil Price Forecast

Brent Price Chart

UKOIL is currently trading at $84.63, up 0.58%. The 4-hour chart shows a pivot point at $84.29, crucial for determining market direction. Immediate resistance is at $85.19, followed by $85.65 and $86.19.

On the downside, immediate support is at $83.83, with further levels at $83.28 and $82.53. Technical indicators reveal the 50-day EMA at $84.23 and the 200-day EMA at $83.28, indicating a bullish trend.

The outlook remains bullish above the pivot point of $84.29. However, a break below this level could trigger a sharp selling trend.