Natural Gas and Oil Market Analysis: WTI Price at $73 and Potential Trends

Market Overview

Oil prices declined on Wednesday due to reports of increasing U.S. crude inventories and easing tensions in the Middle East. U.S. crude stocks reportedly rose by 347,000 barrels last week, indicating a potential oversupply that could pressure prices. In contrast, gasoline and distillate stocks fell. U.S. Secretary of State Antony Blinken's efforts to mediate a ceasefire in Gaza have also contributed to the downward trend.

Weaker demand in China and global refinery margin pressures are compounding the impact. These developments suggest continued volatility in both oil and natural gas markets, with potential downside risks if oversupply concerns persist.

Natural Gas Price Forecast

Natural Gas (NG) Price Chart: Natural Gas (NG) is currently trading at $2.198, showing a slight increase of 0.04% on the 4-hour chart. The pivot point at $2.21 is critical, as it will likely guide the market's next move. Resistance levels are identified at $2.29, $2.35, and $2.41, while support is found at $2.11, $2.05, and $1.99. A triple-top pattern is forming near the $2.29 mark, suggesting strong resistance and capping further upside potential.

However, the 50-day EMA at $2.18 supports a bullish outlook, indicating that the trend could continue upward if the price stays above $2.15. A drop below this level could signal a sharp selling trend.

WTI Oil Price Forecast

WTI Price Chart: WTI Crude Oil (USOIL) is currently trading at $72.99, down by 0.09% on the 4-hour chart. The key pivot point at $74.28 is critical in determining the direction of the next move. Immediate resistance is seen at $75.29, with further levels at $76.49 and $77.93. On the downside, support is found at $71.68, followed by $70.59 and $69.26. The 50-day EMA at $75.58 and the 200-day EMA at $77.39 are above the current price, signalling a bearish outlook.

A recent breakout below the upward trendline, coupled with a bearish engulfing candle, suggests that a downward trend may continue. The market is bearish below $74.28, with a potential for further declines unless it breaks above this level.

Brent Oil Price Forecast

Brent Price Chart: Brent Oil (UKOIL) is trading at $77.03, down by 0.14% on the 4-hour chart. The pivot point at $76.87 is crucial, as it indicates the potential direction of the market. Immediate resistance levels are at $78.29, $79.54, and $81.17, while support lies at $76.04, $75.00, and $73.86. The 50-day EMA is positioned at $79.06, with the 200-day EMA at $80.78, both above the current price, suggesting a bearish trend.

The downward channel observed on the 4-hour timeframe signals continued selling pressure. UKOIL may drop further if it remains below $76.87. The market outlook is bearish below this level, with the potential for a shift if the price breaks above it.