Natural Gas and Oil Forecast: Bullish Momentum on Geopolitical and Winter Trends

Market Overview

Oil prices extended their gains for a third consecutive week, with Brent up 5.9% and WTI rising 6.9% by January 10, as geopolitical tensions and harsh winter conditions in the U.S. and Europe bolstered fuel demand.

Analysts highlight growing concerns over supply disruptions from sanctions, combined with historically low stockpiles and optimism around China’s economic recovery.

A colder-than-expected winter has driven increased demand for heating oil, kerosene, and LPG. Despite a stronger U.S. dollar, which usually pressures oil prices, a widening Brent futures premium signals tightening supplies amid rising consumption, further fueling market momentum.

Natural Gas Price Forecast

Natural Gas (NG) prices are trading at $3.49, up 0.17%, as the market consolidates after recent gains. The pivot point at $3.63 remains a critical level for near-term direction. Immediate resistance is observed at $3.82, with the next key hurdles at $4.01. On the downside, immediate support lies at $3.41, followed by a more substantial level at $3.26.

The 50 EMA at $3.58 aligns closely with the price action, signaling a potential short-term bullish trend. Meanwhile, the 200 EMA at $3.22 highlights broader support, reflecting a long-term positive structure. A sustained move above $3.63 would reinforce bullish sentiment, targeting $3.82. Conversely, failure to hold above $3.63 could push prices back toward $3.41.

WTI Oil Price Forecast

US crude oil (USOIL) is trading at $74.13, down 0.16% as traders weigh mixed signals from technical levels. The 4-hour chart shows consolidation above the pivot point at $73.20, signaling cautious optimism. Immediate resistance is at $75.24, with the next targets at $76.48 and $77.82, reflecting potential upside momentum.

Conversely, support levels at $72.18 and $71.09 are critical for maintaining the current trend.

The 50 EMA at $73.00 aligns closely with the pivot, reinforcing a bullish bias above this level. Meanwhile, the 200 EMA at $71.01 offers broader stability. The Relative Strength Index (RSI) indicates neutral momentum, leaving room for potential breakout moves. A sustained close above $75.24 could accelerate gains, while failure to hold $73.20 risks deeper corrections.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $77.15, down 0.08%, as the market hovers near its pivot point of $77.24. The 4-hour chart reflects a cautious tone, with immediate resistance at $77.98 and further upside targets at $78.76 and $79.43. On the downside, support lies at $75.67, followed by a deeper level at $74.73.

The 50 EMA at $75.91 reinforces near-term support, indicating bullish momentum above the pivot. Meanwhile, the 200 EMA at $74.30 provides a broader safety net for buyers. The RSI is neutral, suggesting limited directional bias for now. A decisive move above $77.98 could spark further gains, while a break below $77.24 risks testing lower supports.