Natural Gas and Oil Forecast: Prices Struggle Amid Rising Inventories and Demand Uncertainty

Market Overview

Oil prices continued their downward trend, with WTI crude falling toward $74 per barrel, marking its sixth consecutive decline and the worst weekly performance since November. Market sentiment remains under pressure amid rising geopolitical tensions and uncertainty over future energy policies.

Traders are closely monitoring global economic conditions and their impact on energy demand. Meanwhile, recent EIA data revealed a ninth consecutive drop in U.S. crude inventories, falling below the five-year seasonal average, while distillate stocks declined sharply.

However, rising gasoline inventories signal potential challenges for demand recovery in the coming weeks.

Natural Gas Price Forecast

Natural Gas (NG) prices are trading at $3.49, down 0.26%, as bearish sentiment persists below the key pivot point at $3.91. The commodity is struggling to maintain momentum amid a lack of strong buying interest. Immediate resistance is observed at $4.13, with the next hurdles at $4.33, while support levels rest at $3.72 and $3.55.

The 50-day EMA at $3.90 serves as a critical barrier, reinforcing downward pressure, while the 200-day EMA at $3.55 offers a robust long-term support level.

A sustained move above $3.91 could signal a bullish reversal, targeting higher resistance levels, but failure to hold this line may intensify selling, driving prices toward the $3.55 support zone.

WTI Oil Price Forecast

U.S. crude oil (USOIL) is trading at $74.51, up 0.38%, as it hovers below the key pivot point of $75.02. The market remains under pressure, with the 50-day EMA at $76.04 acting as a significant resistance level. A break above this threshold could signal a bullish continuation, targeting resistance levels at $76.74 and $79.12.

On the downside, immediate support lies at $72.85, followed by a deeper level at $71.00. The 200-day EMA at $73.69 provides a critical long-term support zone. If prices fail to sustain above $75.02, bearish momentum could accelerate, pushing oil toward lower support levels.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $78.18, up 0.44%, but remains below the critical pivot point of $78.70. The 50-day EMA at $79.26 acts as a key resistance level, with further hurdles at $80.45 and $81.76. A break above these levels could signal a bullish continuation, attracting more buyers into the market.

On the downside, immediate support is seen at $77.03, followed by a stronger cushion at $75.70, aligning closely with the 200-day EMA at $76.81.

If prices fail to break above $78.70, bearish sentiment could dominate, leading to a potential test of lower support levels. Market participants are watching global supply trends and economic data for further cues on price direction.