Natural Gas and Oil Forecast: Sanctions Drive Brent to 4-Month Highs

Market Overview

Oil and gas prices continue their upward trajectory, with Brent crude surpassing $81 per barrel, marking a four-month high. Heightened geopolitical tensions and expanded sanctions have disrupted key crude flows, constraining supplies and compelling major importers to seek alternative sources.

Analysts estimate that targeted sanctions have impacted up to 25% of Russian oil exports, tightening global supply chains and pushing markets into deeper backwardation.

As logistical challenges mount, energy markets remain on edge, with the outlook for Brent and WTI skewed toward higher price ranges in the short term. Supply uncertainties are expected to fuel further volatility.

Natural Gas Price Forecast

Natural Gas (NG) prices are sitting at $3.71, down 1.06% on the day, reflecting mild bearish momentum. The 4-hour chart shows prices trading below the pivot point of $4.11, a critical level to watch. Immediate resistance lies at $4.37, with the next at $4.56.

On the downside, support is holding at $3.81, with stronger support at $3.55. The 50-day EMA at $3.79 suggests minor resistance to upward moves, while the 200-day EMA at $3.50 provides a solid safety net.

A break above $4.11 could reignite bullish sentiment, while failure to hold this level might lead to sharper declines. Traders should stay alert for a breakout or breakdown around the pivot point.

WTI Oil Price Forecast

USOIL prices are trading at $77.93, up 1.82% on the day, as buyers capitalize on an upward channel breakout. The pivot point at $77.55 is a key level to watch—remaining above it suggests continued bullish momentum. Immediate resistance is at $79.01, with a higher target at $80.07.

On the downside, support levels are seen at $76.66 and $75.39. Technical indicators show the 50-day EMA at $75.02 and the 200-day EMA at $72.53, underscoring strong upward momentum.

However, oil is approaching overbought territory, signaling potential for a short-term correction. A sustained break below $77.55 could shift sentiment, leading to sharper declines. Traders should monitor for volatility near these key levels.

Brent Oil Price Forecast

UKOIL prices are trading at $81.07, up 1.80% on the day, continuing their upward momentum. The pivot point at $80.43 is a key level to watch—holding above it reinforces the bullish trend. Immediate resistance lies at $82.19, with a higher target at $83.36.

On the downside, support is seen at $79.26 and $78.41. The 50-day EMA at $77.96 and the 200-day EMA at $75.59 highlight a strong underlying uptrend. However, with prices nearing overbought territory, a bearish correction could emerge. A break below $80.43 would signal potential for sharper declines.