Natural Gas and Oil Forecast: Energy Prices Climb with Global Demand Hitting 103.4M BPD

Market Overview

Oil prices climbed in Asian trading on Friday, poised to end a three-week losing streak amid rising fuel demand and ongoing geopolitical tensions. Market participants reacted to trade policy developments and potential shifts in global supply dynamics.

The International Energy Agency reported a slight rise in Russian oil production, suggesting possible supply increases despite sanctions. Meanwhile, global oil demand surged to 103.4 million barrels per day, marking a 1.4 million bpd increase from last year.

Analysts point to Europe’s higher natural gas prices potentially boosting oil demand as industries consider alternatives. Energy markets remain volatile as traders monitor geopolitical events and shifting supply conditions.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $3.687, up 0.14%, showing signs of cautious optimism. The price is holding above the 50-day EMA at $3.555, suggesting continued buying interest. The pivot point at $3.720 is key; staying above it keeps the bullish sentiment intact, with immediate resistance at $3.790 and a potential move toward $3.901 if momentum continues.

A recent bullish engulfing candle indicates fresh buying activity, supported by the ascending trendline. However, if prices break below $3.720, sellers might step in, driving a decline toward support at $3.539 or even $3.429.

With natural gas demand picking up amid colder weather forecasts, traders should monitor the $3.720 level closely.

WTI Oil Price Forecast

Crude oil (USOIL) is trading at $71.34, slightly down by 0.04%, as it hovers below the pivot point of $71.52. The 50-day EMA at $71.65 indicates potential resistance, with the next target at $72.53 if buyers step in. However, the broader trend remains bearish as long as the price stays under the pivot.

A break below immediate support at $70.21 could push oil toward $69.29, signaling increased selling pressure. The market is grappling with mixed signals—on one hand, geopolitical tensions are providing some support, while concerns over global demand keep a lid on gains.

Keep an eye on the $71.52 level; a decisive break above could shift sentiment toward the bullish side, while rejection at this level might accelerate the downward trend.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $75.14, showing little movement but staying just below its pivot point of $75.36. The 50-day EMA at $75.35 indicates that the market is at a critical juncture. If prices break above the pivot, we could see a push toward $76.31, with further resistance at $77.26.

However, failure to hold above $75.36 might invite sellers, driving the price down toward immediate support at $74.03 and possibly as low as $72.96. The broader outlook remains bearish unless bulls reclaim the pivot.

With global demand concerns still in focus, the market’s next move hinges on whether buyers step in to break resistance or sellers maintain control below the pivot level.