Natural Gas and Oil Forecast: Can Prices Recover from OPEC+ Supply Concerns?

Market Overview

Oil and natural gas markets face continued pressure as geopolitical tensions and weak demand from China, the world’s largest crude importer, dampen price recovery.

Brent and WTI crude are set for weekly declines of 2.7% and 3.3%, respectively, amid signals that China’s economic recovery remains uneven, with oil processing down 4.6% year-on-year.

Additionally, the International Energy Agency forecasts an oversupply by 2025, even with ongoing production cuts from OPEC+ members. Meanwhile, U.S. inventory reports showed unexpected declines in gasoline and distillates, adding further uncertainty to market fundamentals.

Natural Gas Price Forecast

Natural Gas (NG) is currently trading at $2.89, down 1.73%, showing a bit of a tug-of-war between bulls and bears. The price has slipped below the 50-day EMA at $2.86, a bearish signal that indicates sellers are gaining momentum.

Immediate support lies at $2.64, with a stronger floor at $2.59. If prices breach these levels, we could see a slide down to $2.52.

However, if natural gas manages to push above the $2.77 pivot point, we might see it test resistance at $2.83 and potentially higher at $2.92. Essentially, the market leans bearish below $2.77, but a breakout above that level could attract buyers back in.

WTI Oil Price Forecast

U.S. crude oil (USOIL) is trading at $67.77, down 1.16% for the session, as it hovers below the pivot level of $68.19. This pivot is an important threshold—if prices can break above it, we might see buyers step in, pushing oil toward resistance at $68.80 and possibly up to $69.27.

However, staying below the pivot keeps the outlook bearish, especially with the price below the 50-day EMA at $68.70, reinforcing downward pressure. Immediate support sits at $67.38, with additional levels at $66.92 and $66.42 if selling intensifies.

The current bearish candle formation suggests sellers are in control unless the price can reclaim ground above $68.19.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $71.59, down 1.15%, with a cautious outlook as it sits below the pivot point at $72.18. This level is key; if prices can move above it, we might see some bullish momentum toward the next resistance at $72.57 and possibly up to $72.94.

However, staying below the pivot suggests sellers are holding control, particularly with the price sitting under the 50-day EMA at $72.46. Immediate support lies just below at $71.50, with further levels at $71.10 and $70.69 if selling pressure intensifies.

The recent bearish candle pattern hints at a potential downtrend unless buyers push prices back above $72.18.