Asian markets saw oil prices stabilize as traders navigated between geopolitical uncertainties and weakening demand expectations. After a decline in the previous session fueled by potential ceasefire discussions, concerns persist over possible escalations that could impact critical oil infrastructure in the Middle East.
The U.S. Energy Information Administration (EIA) has also revised its 2024 global oil demand forecast downward, attributing the adjustment to sluggish industrial growth in both the United States and China.
The sensitivity of natural gas and oil markets to geopolitical developments remains a significant factor, as disruptions in supply chains could contribute to price volatility. Analysts are anticipating more cautious forecasts for energy commodities in the near term.
Natural Gas Price Overview
Natural gas (NG) prices have seen a slight uptick, currently trading at $2.92, reflecting a modest increase of 0.03%. This movement indicates a short-term consolidation phase, with the 4-hour chart showing prices stabilizing around the pivotal support level of $2.69.
For a positive price trajectory, natural gas must surpass the initial resistance at $2.75, with subsequent resistance points at $2.78 and $2.83. Immediate support is set at $2.65, followed by further support levels at $2.61 and $2.58. The 50-day exponential moving average (EMA) currently sits at $2.80, while the 200-day EMA aligns with the pivot point at $2.69. A bullish outlook persists as long as prices remain above $2.69; however, a break below this level may trigger increased selling pressure.
WTI Oil Price Analysis
West Texas Intermediate (WTI) crude oil prices have increased slightly to $74.06, showing a minor gain of 0.29% and demonstrating steady upward momentum. The 4-hour chart highlights the $73.49 pivot point as a critical support level, which has proven to be a solid foundation for recent gains.
The next significant resistance level is at $74.62, followed by additional resistance at $75.84 and $77.40. Immediate support is anchored at $72.65, with deeper support levels at $71.58 and $70.53. The 50-day EMA is positioned at $74.00, reinforcing near-term bullish sentiment, while the 200-day EMA at $71.73 indicates a broader uptrend. Maintaining prices above the $73.49 pivot suggests a positive outlook; however, a dip below this level could lead to a sharp downward correction.
Brent Oil Price Forecast
Brent crude oil prices are currently at $77.73, reflecting an increase of 0.39% and indicating a stable short-term uptrend. The 4-hour chart identifies the $77.13 pivot point as critical support, which has remained robust despite recent volatility.
Immediate resistance is at $78.18, with further resistance levels identified at $79.19 and $80.57, signaling a potential path for additional gains if momentum continues. On the downside, support is established at $76.33, with further support levels at $75.25 and $74.34. The 50-day EMA currently stands at $77.58, reinforcing a near-term bullish bias, while the 200-day EMA at $75.27 supports a longer-term positive outlook. Remaining above $77.13 will help sustain the bullish momentum; however, a decline below this level could invite rapid selling pressure.
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