Natural Gas and Oil Forecast: Oil Prices Weaken as OPEC+ Cuts Ease; Eyes on $2.72 Gas Pivot

Market Overview

Oil prices dipped for the third consecutive day, with Brent crude and WTI falling 4% and 6% for the week, respectively. The decline comes amid expectations of increased oil production from Libya and OPEC+.

Despite China’s latest stimulus measures to revive its economy, concerns over rising global oil output continue to weigh on markets. Libya’s potential return of 500,000 barrels per day and OPEC+’s partial reversal of production cuts in December add to the bearish outlook.

For natural gas, this oil market pressure could limit upside potential, especially if higher production dampens energy demand forecasts.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.727, down 0.58%, indicating some downside pressure but holding above the key pivot point at $2.72. Immediate resistance is positioned at $2.78, with further levels at $2.82 and $2.88.

On the support side, $2.67 provides the first line of defense, followed by $2.61 and $2.56. The 50-day Exponential Moving Average (EMA) at $2.72 is crucial, acting as a near-term support. Meanwhile, the 200-day EMA at $2.54 signals longer-term stability.

The market outlook leans bullish as long as prices remain above the $2.72 pivot, but a break below this level could trigger a sharper decline toward the next support levels.

WTI Oil Price Forecast

WTI Crude Oil (USOIL) is trading at $67.44, down 0.11%, showing some consolidation around key technical levels. The pivot point rests at $67.73, with immediate resistance at $68.29.

If prices break above this resistance, further targets would be $68.71 and $69.16. However, a move below immediate support at $66.94 could signal a deeper decline, with the next supports at $66.58 and $66.23.

The 50-day EMA at $68.79 and the 200-day EMA at $69.85 suggest a bearish sentiment in the short term as prices remain below these averages. Still, as long as prices stay above $67, bulls may maintain control.

Brent Oil Price Forecast

Brent Crude Oil (UKOIL) is trading at $73.71, down 1.92%, reflecting a bearish tone after falling below the pivot point at $73.98. The immediate support level lies at $73.05, with further support at $72.45 and $71.91.

On the upside, immediate resistance stands at $74.54, followed by $75.23 and $75.85. The 50-day Exponential Moving Average (EMA) at $74.43 and the 200-day EMA at $73.97 suggest a bearish trend in the short term, as prices struggle to rise above these levels.

A break below $73 could accelerate selling, while reclaiming $74 would open the door for potential upside momentum.