Natural Gas and Oil Forecast: Can Strong U.S. Demand Push Prices Higher?

Market Overview

Oil prices gained traction on Thursday, bolstered by strong U.S. demand data and a weakening dollar, despite heightened geopolitical uncertainty. The U.S. Energy Information Administration (EIA) reported a 2.8-million-barrel drop in distillate inventories, exceeding forecasts and signaling resilient demand.

Meanwhile, crude stockpiles rose by 1.7 million barrels, surpassing expectations.

The weaker U.S. dollar further supported oil prices, making crude more attractive to global buyers. Additionally, ongoing geopolitical tensions in key energy-producing regions have increased risk premiums, keeping market volatility elevated.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $4.24, up 0.05%, maintaining its bullish momentum above the key pivot level of $4.20. The 50-day EMA at $4.13 and 200-day EMA at $4.11 reinforce near-term support, signaling buyers remain in control. Immediate resistance stands at $4.37, with a breakout above this level potentially driving prices toward $4.59.

On the downside, a break below $4.20 could shift momentum, exposing natural gas to deeper losses toward $3.75 and $3.51. The market remains sensitive to weather-driven demand and storage reports, making short-term volatility likely. As long as $4.20 holds, the bullish outlook remains intact, with traders watching for volume confirmation above $4.37 to confirm further upside.

WTI Oil Price Forecast

U.S. crude oil (USOIL) is trading at $67.32, up 0.16%, as prices hover around the key pivot point at $67.39. The 50-day EMA at $67.07 is providing short-term support, while the 200-day EMA at $67.88 acts as a resistance ceiling. If WTI holds above $67.39, bullish momentum could push prices toward $68.35, with an extended move targeting $69.33.

On the flip side, failure to sustain gains could see crude testing support at $66.31, with a break lower exposing $65.25. If oil breaks past $68.35, it could spark renewed buying interest. However, a drop below $67.39 could invite sharper selling pressure.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $71.20, up 0.15%, maintaining a bullish stance above the key pivot point at $71.16. The 50-day EMA at $70.77 is offering strong short-term support, while the 200-day EMA at $71.50 suggests broader trend resistance.

A sustained move above $71.16 could push prices toward $72.15, with a breakout potentially extending gains to $73.56.

On the downside, failure to hold above $71.16 could trigger a pullback to $69.88, with further downside risk at $68.54. Market sentiment remains tied to supply concerns and global demand trends. Traders should watch for a confirmed move above $72.15 for further upside momentum, while a drop below $71.16 may shift sentiment toward a more bearish outlook.