Natural Gas and Oil Forecast: Oversupply Concerns Collide With Support Zones

Market Overview

Crude prices climbed over 1% on Tuesday, clawing back losses from a sharp selloff that drove Brent and WTI down 14% and 15% respectively, hitting their lowest levels in nearly four years. The rebound followed a broader market stabilization, but uncertainty lingers.

Analysts at ING flagged persistent downside risks, citing heightened geopolitical tensions and the threat of escalating trade barriers that could erode global growth and suppress energy demand. U.S. crude inventories are estimated to have risen by 1.6 million barrels last week, signaling continued oversupply concerns.

With demand fragility and geopolitical uncertainty mounting, energy markets remain on high alert.

Natural Gas Price Forecast

Natural gas futures are stabilizing around $3.68 after testing trendline support near $3.60. This level has held firm several times since early February, suggesting it’s more than just a technical afterthought.

That said, the broader trend remains capped under a descending trendline that has kept prices in check since the mid-March peak. The 50 EMA at $3.92 and the 200 EMA at $3.94 are acting as layered resistance overhead, further constraining bullish momentum.

If prices can reclaim the $3.92–$3.95 range, it could open up room toward $4.24, though sellers will likely re-emerge around the upper boundary of the descending wedge.

On the downside, a break below $3.60 could expose the $3.33 support zone. For now, the market is consolidating, caught between macro uncertainty and technical compression.

WTI Oil Price Forecast

WTI crude oil is stabilizing around $61.42 after plunging nearly 15% from the $72.26 high. The bounce off the 1.618 Fibonacci extension at $61.09 shows signs of buyer interest, but price remains pinned below both the 50 and 200 EMAs.

That keeps the broader trend under pressure. If bulls can push past $63.34, a short-term recovery toward $65.32 is possible.

But failure to stay above $61.08 opens the door to $58.45. The market feels tentative—watch volume and structure closely.

Brent Oil Price Forecast

Brent crude oil is hovering around $64.90, attempting to stabilize after a steep correction from the $75.44 peak. The market is consolidating below the key $65.55 Fibonacci level, which aligns with the 23.6% retracement from the recent slide.

This zone is acting as immediate resistance, and the price is caught in a tight range as traders weigh whether this bounce is sustainable or merely corrective.

A clean break above $65.55 could open the door toward $67.46 and $68.99, but momentum remains capped by both the 50 EMA at $69.56 and the 200 EMA at $71.85—both significantly above current price action.

Conversely, failure to reclaim the $65.55 mark increases the likelihood of a retest of the recent low near $62.50.