Anticipating a Minor Drop, Natural Gas and Oil Prices Projected to Decline Slightly, Hinting at a Downtrend Ahead
1. The drop in oil prices was driven by forecasts of continuous U.S. inflation and the prospect of elevated interest rates.
2. Despite political uncertainties in Iran and Saudi Arabia, the market impact remained minimal in anticipation of the upcoming OPEC+ meeting.
3. Both benchmark oil indices experienced a decrease of less than 1%, reflecting a cautious approach by Fed officials who are awaiting clearer indicators of inflation deceleration.
Market overview
Oil prices dropped early on Tuesday in Asia. This was because people expected inflation in the U.S. to continue and interest rates to rise, which made consumers and industries less interested in buying oil.
On Monday, both major oil price measures fell by less than 1%. This happened because officials from the Federal Reserve, which controls interest rates, wanted to see clearer signs that inflation was slowing down before they thought about lowering rates. Some experts were worried that if rates didn’t go down soon, demand for oil might decrease.
The uncertainty about politics in Iran and Saudi Arabia didn’t really affect the oil market much. Now, investors are paying attention to the upcoming meeting of OPEC and its allies, which will happen on June 1. They’ll be talking about how much oil they should produce and if they should keep cutting production like they’ve been doing voluntarily.1
Natural Gas Price Forecast
Early in trading, the price of Natural Gas (NG) dropped to $2.736, which is 0.10% lower than before. Some important levels to watch are $2.75, which is a key point, and $2.81, $2.89, and $2.97, which are resistance levels.
If the price goes down, it might find support at $2.63, and then at $2.55 and $2.45. Looking at certain technical measures, the 50-day EMA (Exponential Moving Average) is at $2.45, and the 200-day EMA is at $2.12.
Right now, the overall expectation is for the price to keep going down, especially if it stays below $2.75. But if it manages to go above this level, it could mean a change to a more positive trend.
Brent Oil Price Forecast
In the early hours of trading, the price of Brent crude oil (UKOIL) went down to $83.15, which is a decrease of 0.56%. Some important levels to watch are $83.51, which is a key point, and $84.51, $85.82, and $86.88, which are resistance levels.
If the price decreases, it might find support at $82.13, and then at $81.04 and $80.05. Looking at certain technical measures, the 50-day EMA (Exponential Moving Average) is at $83.50, and the 200-day EMA is at $84.99.
Right now, the overall expectation is for the price to keep going down, especially if it stays below $83.51. But if it manages to go above this level, it could mean a change to a more positive trend.
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