Natural Gas and Oil Forecast: Demand Uncertainty and Supply Risks Drive Market Instability

Market Overview

Oil prices rebounded after a sharp decline, as uncertainty over energy supply disruptions continued to weigh on market sentiment. Geopolitical tensions have dimmed prospects for increased Russian energy exports, sustaining volatility in crude markets.

Meanwhile, escalating global trade disputes threaten demand, with the International Energy Agency revising down its oil consumption forecasts for late 2024 and early 2025. While supply growth remains strong, energy traders remain cautious as ongoing instability could trigger renewed price spikes.

Analysts warn that while short-term projections lean bearish, disruptions from geopolitical events may keep markets volatile, reinforcing energy’s role as a key risk hedge.

Natural Gas Price Forecast

Natural Gas (NG) is hovering around $4.09, up 0.05%, but struggling to gain traction as it remains below a key pivot level at $4.16. The price is trading near the 50-day EMA at $4.22, reinforcing short-term resistance, while the 200-day EMA at $3.88 suggests longer-term support remains intact.

A break above $4.16 could push NG toward immediate resistance at $4.33, with further upside targeting $4.67. However, failure to clear this level may invite selling pressure, pulling prices toward support at $3.96, with a deeper decline exposing $3.75. Momentum remains mixed, with bearish sentiment prevailing below $4.16.

WTI Oil Price Forecast

Crude oil (USOIL) is trading at $67.01, down 0.05%, as it struggles to hold key support. The price remains below the pivot level at $67.31, reinforcing bearish sentiment, while the 50-day EMA at $67.28 adds further resistance.

If oil fails to break above $67.31, selling pressure could drive it toward immediate support at $66.34, with a deeper slide exposing $65.27. Conversely, a move above $67.31 could shift momentum toward $68.19, with further upside targeting $69.26.

The 200-day EMA at $69.75 remains a key long-term barrier. Without strong bullish momentum, oil risks further declines. Traders should watch for a decisive move above $67.31 to confirm a potential reversal.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $70.31, slipping 0.04%, as it remains pressured below the key pivot point at $71.07. The 50-day EMA at $70.58 is acting as immediate resistance, while the 200-day EMA at $73.13 presents a stronger barrier to the upside.

A failure to break above $71.07 could trigger further declines, with $68.61 serving as the next key support, followed by $67.07. However, if UKOIL manages to hold above $71.07, it could see gains toward $73.38, with further upside potential to $74.87. For now, the bias remains bearish unless a decisive breakout above $71 occurs.