Natural Gas and Oil Forecast: Is the USOil Downtrend Set to Continue Below $70?

Market Overview

Oil prices fell on Monday after China’s fiscal stimulus measures, announced at the National People’s Congress, failed to meet investor expectations, suggesting limited support for fuel demand.

Additionally, concerns over U.S. supply disruptions from Hurricane Rafael subsided as Gulf operations began to normalize, with Shell and Chevron resuming activities.

With China’s consumption stagnating and policy uncertainty under the new U.S. administration, commodity markets face mixed outlooks.

For metals, the cooling oil market and weak Chinese demand may weigh on gold and silver prices due to lower inflationary pressures, while copper may struggle as China’s growth slows.

Natural Gas Price Forecast

Natural Gas (NG) prices are showing a solid rise, currently up 5.86% at $2.94, with a strong push above the pivot point of $2.83. This level is key: staying above it could keep the momentum on the bullish side, with resistance ahead at $2.87 and $2.92.

A further climb could see prices testing $2.96, but a double top around $2.82 might limit gains. On the downside, immediate support lies at $2.77, with the 50-day EMA at $2.72 and the 200-day EMA at $2.65 adding to the safety net.

Overall, the outlook remains bullish above $2.83, but caution is warranted if prices dip below this critical level.

WTI Oil Price Forecast

USOIL is trading lower today at $70.03, down 0.51%, with a bearish tone setting in as prices stay below the pivot point of $70.58. This level is crucial; if prices can’t push above it, we’re likely to see continued downward pressure. Immediate resistance sits at $71.40, with further hurdles at $72.17 and $72.85.

On the support side, key levels to watch are $69.70 and $69.18, with additional backup at $68.66. The 50-day EMA at $71.08 and the 200-day EMA at $70.73 add resistance overhead. Overall, the sentiment is bearish below $70.58, but a decisive break above that level could shift momentum to the upside.

Brent Oil Price Forecast

UKOIL is trading slightly lower at $73.56, down 0.51%, and facing resistance around the pivot point of $74.04. This level is critical—if prices can’t climb above it, the bearish sentiment is likely to persist. Immediate resistance stands at $74.83, with further barriers at $75.34 and $76.04.

On the downside, support is seen at $73.32, with additional levels at $72.80 and $72.19. The 50-day EMA at $74.50 and the 200-day EMA at $74.36 add further overhead resistance.

For now, the outlook remains bearish below $74.04, but a break above this level could turn the tide and invite buyers back into the market.