Natural Gas, WTI Oil, Brent Oil Forecasts – Crude Having Buy Rumor, Sell Fact Moment - FX Empire
Natural Gas, WTI Oil, Brent Oil Forecasts - Crude Having Buy Rumor, Sell Fact Moment | FXEmpire
On Monday, U.S. natural gas futures experienced a substantial increase, fueled by traders taking advantage of oversold technical situations and evaluating the potential for production reductions. In response to consistently low commodity prices, EQT, the top natural gas producer in the U.S., declared its intention to reduce production by nearly 1 billion cubic feet per day (bcfpd) until March.
The daily chart clearly identifies the 50-day moving average at $2.081 as the key target.
This concerted effort by OPEC+ members underlines their determination to keep oil prices above a certain threshold, despite the ongoing challenges such as geopolitical risks and uneven global recovery from the pandemic. The Brent crude market remains cautious, reflecting concerns over potentially subdued demand in the coming quarter.
Technically, the key to sustaining the rally by Brent crude oil, is holding the 200-day moving average at $82.11. If this level fails then the long-term trend will turn down with the next target the 50-day moving average at $80.17.
James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.