Natural Gas and Oil Forecast: 4.2M Barrel Inventory Jump Weighs - FX Empire

Natural Gas and Oil Forecast: 4.2M Barrel Inventory Jump Weighs | FXEmpire

The US Energy Information Administration reported a larger-than-expected rise in crude inventories by 4.2 million barrels last week, marking the fifth consecutive week of increases. Refinery utilization remained low, affecting fuel stock levels. Despite these challenges, potential OPEC+ output cuts and Middle East tensions provided some support.

However, the Federal Reserve’s stance on interest rates, indicating they might remain high to combat inflation, could dampen oil demand, impacting the Natural Gas and Oil Forecast by suggesting a cautious market outlook amidst economic and geopolitical factors.

Natural Gas (NG) prices edged up by 0.27% to $1.8760 after falling sharply from $1.9375 area, indicating a slight upward momentum in the market. The commodity’s price hovers around the pivot point of $1.8740, with immediate resistance levels at $1.9378, $1.9871, and $2.0470. These figures suggest potential hurdles for further price increases.

On the downside, support is found at $1.7983, $1.7257, and $1.6773, providing a safety net against significant drops. The 50-day Exponential Moving Average (EMA) stands at $1.8130, while the 200-day EMA is at $1.9979, marking a bullish trend above the pivot point.

Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.