Oil Forecast: Geopolitical Risks and Supply Levels Impacting Natural Gas and Oil Prices
Market Overview
Oil prices increased on Thursday as geopolitical tensions in the Middle East sparked concerns over potential supply disruptions. While fears of escalating hostilities boosted prices, an unexpected rise in U.S. crude inventories by 3.9 million barrels eased upward pressure, signalling that the global market remains well-supplied. This inventory build, combined with OPEC’s spare production capacity, has tempered worries about immediate shortages.
Natural Gas and Oil Price Forecast
Natural Gas Price Insights
Natural Gas (NG) is trading at $2.93, up 0.30% for the session, hovering near its pivot point at $2.91. The price has been consolidating, indicating indecision in the market.
- If NG breaks above $2.95, targets are $2.97 and $3.00.
- If it slips below $2.91, support could be retested at $2.87.
WTI Oil Price Outlook
WTI Crude Oil (USOIL) is steady at $70.94, above a key pivot point of $70.73. This level is crucial as:
- Staying above $70.73 may lead to resistance at $71.63.
- Slipping below could shift sentiment bearish, with support at $69.92.
Brent Oil Price Trends
Brent Crude Oil (UKOIL) is trading at $74.69, staying above the pivot point at $74.41.
- If prices surpass $75.08, targets include $75.65 and $76.11.
- If it falls below $74.41, there may be deeper pullback risks.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.