Oil prices fell by more than $2 per barrel on Monday, influenced by renewed hopes for peace in the Middle East and fears of weakening demand from China. The dip came as U.S. Secretary of State Antony Blinken highlighted the importance of ongoing ceasefire negotiations in Gaza, describing them as a crucial moment for stability in the region.
China’s economic challenges also contributed to the decline, with notable drops in new home prices and a slowdown in refinery operations. These factors weighed on both crude benchmarks, leading to nearly a 2% decrease. The ongoing trends may push prices further down, affecting the broader outlook for natural gas and oil.
Natural Gas Price Outlook
Natural Gas (NG) is currently trading at $2.232, marking a slight decrease of 0.72%. The key level to watch is $2.21, which serves as a pivot point. Resistance is expected at $2.29, $2.35, and $2.41, while support can be found at $2.11, $2.05, and $1.99. The 50-day Exponential Moving Average (EMA) is positioned at $2.17, with the 200-day EMA aligned with the pivot at $2.21.
A triple top pattern is forming near $2.29, creating resistance. If prices break above this level, they could advance toward $2.34, supported by an upward trendline that suggests continued buying interest. The market is likely to remain bullish above $2.21, but a drop below this threshold could trigger a strong selling trend.
WTI Oil Price Outlook
West Texas Intermediate (WTI) Crude Oil is trading at $73.01, down 0.95%. The critical pivot point to monitor is $73.92. Resistance levels are identified at $75.29, $76.49, and $78.00, with support at $71.68, $70.59, and $69.26. The 50-day EMA is at $76.19, while the 200-day EMA stands at $77.64.
The recent bearish breakout below the upward trendline indicates the potential for further declines, possibly leading to a significant sell-off towards the next support zone. Given this scenario, selling below $73.92 could be a prudent strategy. Conversely, if prices break above this level, a bullish trend may emerge. The market remains bearish below $73.92, with a possible shift to bullish momentum if this resistance is overcome.
Brent Oil Price Outlook
Brent Crude Oil is currently priced at $77.00, reflecting a 0.89% decline. The key pivot point is $77.82. Immediate resistance levels are at $78.79, $79.71, and $81.41, while support can be found at $76.23, $75.10, and $74.06. The 50-day EMA is positioned at $79.53, and the 200-day EMA stands at $80.99.
The recent bearish breakout below the upward trendline suggests further downside risks, with the potential for a sharp decline toward the next support area. Selling below $77.82 may be a strategic move under the current conditions. However, if prices rise above this level, the market could shift to a bullish stance. The outlook remains bearish below $77.82, with the potential for bullish momentum if this level is breached.