Natural Gas and Oil Forecast: Is a Breakout Above $3.31 and $73 Imminent?

Market Overview

Oil prices steadied on Friday, set for a weekly gain amid optimism surrounding China’s economic recovery and fiscal stimulus measures. However, a stronger U.S. dollar, which has risen 7% this quarter, capped further gains, making oil more expensive for non-dollar buyers.

Geopolitical tensions also added uncertainty, keeping natural gas and oil markets volatile. U.S. crude inventories fell by 3.2 million barrels last week, signaling tightening supply, while traders awaited confirmation from the Energy Information Administration’s delayed report.

These factors collectively underline the fragile balance in energy markets, with demand recovery offset by currency pressures and geopolitical risks.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $3.29, up 0.43% on the day, as it hovers near the $3.31 pivot point. The 4-hour chart shows an upward channel supporting the recent bullish momentum, with the 50-day EMA at $3.31 acting as immediate support.

A break above $3.31 could see prices test the first resistance at $3.61, with potential to climb toward $3.83 if the momentum persists.

Conversely, a break below $3.31 might drive sharp selling pressure, targeting immediate support at $3.16 and deeper levels around $3.00. The 200-day EMA at $3.06 highlights longer-term support, reinforcing a cautiously bullish outlook.

WTI Oil Price Forecast

U.S. crude oil (USOIL) is trading at $69.56, down 0.08%, reflecting a cautious market mood. Prices are hovering near the pivot point at $69.54, with the 50-day EMA at $69.75 and the 200-day EMA at $69.52 providing near-term guidance.

A sustained move above $69.54 could push oil toward resistance levels at $70.50 and $71.37, signaling renewed bullish momentum. However, a break below the pivot risks triggering selling pressure, targeting immediate support at $68.77, with further downside potential to $67.88.

The tight alignment of key EMAs highlights a consolidative phase, with market direction hinging on a decisive breakout. Traders should closely monitor $69.54 for clues on the next major move.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $73.26, holding steady with a marginal 0.01% gain. The price hovers near the pivot point at $73.08, with the 50-day EMA at $73.23 and the 200-day EMA at $73.07, reflecting a neutral tone.

A sustained move above $73.08 could reignite bullish momentum, targeting immediate resistance at $73.81, followed by $74.54. Conversely, a break below $73 risks exposing support levels at $72.49 and deeper at $71.98.

The tight EMA alignment suggests consolidation, but a decisive breakout from the current range could provide directional clarity. Traders should watch $73 as the key level to gauge the next trend.