Natural Gas and Oil Forecast: Russia-Ukraine Tensions Keep Prices Elevated

Market Overview

WTI crude oil steadied near $69 per barrel on Tuesday after a sharp 3% decline, as easing geopolitical tensions in the Middle East helped alleviate supply concerns. However, uncertainty surrounding broader regional stability and escalating Russia-Ukraine conflicts continue to lend underlying support to energy prices.

Oil also faced pressure from a stronger U.S. dollar, driven by renewed trade policy concerns, which weighed on demand.

Meanwhile, traders are closely watching the upcoming December 1st OPEC meeting for signals on production adjustments. Geopolitical risks and currency fluctuations remain key drivers shaping the near-term outlook for natural gas and oil markets.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $3.41, down 0.47% on the day, with the price hovering around a crucial pivot level. This level is acting as a potential support, keeping sellers cautious. The $3.41 pivot point aligns closely with the 50-day EMA, currently at $3.27, reinforcing this area as a critical zone for price stability.

Immediate resistance stands at $3.57, followed by $3.68 and $3.79, with a downward trendline continuing to cap upside momentum.

However, a sustained break below $3.41 could invite sharper selling pressure, targeting supports at $3.27, $3.17, and possibly $3.07.

WTI Oil Price Forecast

U.S. crude oil (USOIL) is trading at $69.07, edging up 0.08% as it holds just above a key pivot level at $68.57. This pivot has acted as a solid support, reinforced by a developing triple-bottom pattern, suggesting potential for a bullish reversal.

Immediate resistance lies at $69.65, with additional hurdles at $70.37 and $71.48 if momentum strengthens.

On the downside, support levels are positioned at $67.82, followed by $67.20 and $66.58, making a break below $68.57 a critical bearish signal. Interestingly, both the 50-day EMA ($69.70) and 200-day EMA ($69.58) are currently overhead, which could challenge upward moves.

Brent Oil Price Forecast

UKOIL (Brent) is trading at $72.56, up a marginal 0.01%, as it hovers near the pivot point of $72.10. The price appears set to complete a 23.6% Fibonacci retracement near $72.88, which aligns with immediate resistance. A break above this level could pave the way for further gains, with next targets at $73.36 and $73.73.

On the downside, support is seen at $71.58, with deeper levels at $71.16 and $70.68 acting as buffers against sharper declines. Notably, the 50-day EMA ($73.56) and 200-day EMA ($73.43) currently sit above the price, suggesting resistance overhead.

Brent’s outlook remains cautiously bullish above the $72.10 pivot, but a move below this could open the door to sharper selling pressure.