Natural Gas and Oil Forecast: China’s Demand Supports Oil, NG Remains Bearish

Market Overview

WTI crude oil prices hovered near $71.81 per barrel amid subdued holiday trading and a third consecutive month of growth in China’s manufacturing activity, though at a slower pace.

The energy market faces mixed signals as stimulus supports demand from China, the world’s largest crude importer, while broader uncertainties persist. Geopolitical tensions and potential shifts in global energy policies contribute to volatility, raising concerns about supply stability and future demand.

Despite recent gains, crude oil remains on track for a slight annual loss, reflecting months of constrained price movements within a narrow range.

Natural Gas Price Forecast

Natural Gas (NG) prices have slipped 7.07% to $3.52, reflecting a sharp downturn as traders digest recent market volatility. On the 4-hour chart, the commodity sits below its pivot point at $3.61, indicating bearish sentiment unless it recovers above this level. Immediate support is found at $3.35, with deeper protection at $3.16, while resistance lies ahead at $3.89 and $4.20.

Technical indicators highlight the struggle. Natural gas is trading under its 50 EMA at $3.62, signaling short-term weakness, but remains above the 200 EMA at $3.24, which reinforces the broader upward channel.

A break above $3.61 could reignite bullish momentum, while slipping further below could accelerate selling pressure. Traders should monitor key levels closely.

WTI Oil Price Forecast

Crude oil (USOIL) prices have climbed 1.02% to $71.81, marking a steady recovery above the pivot point at $71.08. This upward momentum reflects optimism, with immediate resistance at $72.12 and a potential target of $72.84 if buying pressure holds. On the downside, support is firm at $70.18, with additional safety at $69.14.

The technical setup shows crude trading above its 50 EMA at $70.73 and 200 EMA at $69.91, reinforcing the bullish outlook in the near term. However, staying above $71.08 is critical to maintaining this trend. If the price slips below, a sharp selling trend could emerge. Traders should watch for a break above $72.12 to confirm sustained momentum.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $74.80, up 0.99%, holding steady at its pivot point. The immediate resistance at $75.32 could test the bulls, with a move above this opening the door to $76.03. On the downside, key support is seen at $73.74, with a deeper safety net at $72.96 if selling pressure intensifies.

The 4-hour chart shows UKOIL trading above its 50 EMA at $73.83 and 200 EMA at $73.29, highlighting a bullish bias in the short term. Maintaining levels above $74.80 will be crucial for continued gains.

A break below this pivot, however, could trigger a sharper decline, signaling caution for traders watching this trend closely.