Natural Gas and Oil Forecast: Geopolitical Tensions Push Prices Higher, but Supply Fears Linger

Market Overview

Oil prices declined toward $71 per barrel, driven by a larger-than-expected rise in U.S. crude inventories, which increased by 1.6 million barrels last week. This build in stockpiles overshadowed the support offered by China’s recent economic stimulus measures.

Geopolitical tensions in key energy-producing regions have also heightened market uncertainty, with potential disruptions in supply keeping traders on alert.

Despite these pressures, concerns persist over the long-term demand outlook for oil, as fears of a market surplus and the potential for fewer U.S. rate cuts add further complexities to energy forecasts.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.80, slightly up by 0.04%, but the overall picture remains mixed. The pivot point sits at $2.33, acting as a key marker—if prices dip below this, we could see bearish momentum kick in.

Immediate support is around $2.27, with further support at $2.22 and $2.17. On the flip side, if prices break above $2.38, we might see a stronger push toward the next resistance at $2.42 or even $4.47 in the long run.

The 50-day EMA at $2.32 and the 200-day EMA at $2.43 suggest prices are currently in a consolidation phase.

WTI Oil Price Forecast

USOIL is currently trading at $71.53, up by 0.44%, showing some bullish momentum. The key pivot point to watch is $71.23—if prices stay above this, the market looks optimistic, with the next resistance levels at $72.09 and $72.94.

Immediate support is at $70.51, and if prices fall below that, we could see a move toward $69.36 or even $68.44. The 50-day EMA at $70.60 is providing support, while the 200-day EMA at $71.09 suggests the market is slightly bullish.

If oil stays above $71.20, the bullish trend may continue, but a drop below this level could trigger more selling pressure.

Brent Oil Price Forecast

UKOIL is trading at $75.85, up 0.40%, and holding above the key pivot point of $75.46. As long as prices remain above this level, the outlook stays bullish. Immediate resistance is at $76.80, with the next hurdles at $77.47 and $78.24.

If prices slip below the support at $74.80, we might see a dip toward $73.77 or $72.85. The 50-day EMA at $74.80 is offering solid support, while the 200-day EMA at $75.07 reinforces this bullish trend.

Watch for a break below $75.40, which could signal a shift to a bearish trend and drive stronger selling pressure.