Natural Gas and Oil Forecast: Sanctions Fuel Supply Fears Amid Bearish Trends

Market Overview

Oil prices remained rangebound on Wednesday as investors balanced geopolitical tensions and economic signals ahead of the Federal Reserve’s anticipated 25bp rate cut. Lower borrowing costs could stimulate growth, increasing energy demand.

However, fresh sanctions targeting Russia’s crude transport network have heightened volatility concerns, though they have yet to meaningfully disrupt global supply.

Meanwhile, U.S. crude inventories fell by 4.69 million barrels last week, according to industry data, offset by rising gasoline and distillate stocks. Traders remain cautious, awaiting the Fed’s 2025 rate projections and official U.S. energy data for clearer market direction.

Natural Gas Price Forecast

Natural Gas (NG) prices are trading at $3.15, down 0.88%, reflecting a bearish tone on the 4-hour chart. The $3.39 pivot point acts as a key hurdle, reinforced by a downward trendline capping gains.

Prices remain under pressure, with immediate resistance at $3.48 and next resistance near $3.56. On the downside, support lies at $3.25, and a break below could expose $3.11.

The 50 EMA at $3.27 and the 200 EMA at $3.20 show a bearish crossover, signaling sellers maintain control unless bulls reclaim $3.39.

Traders should watch for a clear breakout; failure to surpass resistance keeps the outlook bearish, while a move above $3.39 may spark a bullish reversal.

WTI Oil Price Forecast

USOIL (WTI) is trading at $69.67, down 0.12%, as bearish sentiment lingers below the critical $69.87 pivot point. This level aligns with the 50 EMA, adding weight to its role as a resistance. The 200 EMA at $69.39 offers additional downside pressure, signaling that sellers still have the upper hand.

Immediate support rests at $68.82, and a breakdown there could open the door to the next floor at $67.88. Additionally, a bearish breakout from the recent upward channel suggests further downside potential unless bulls reclaim the $69.87 mark.

If prices push above this level, momentum could target $71.38, but for now, watch for extended weakness below resistance as sellers dominate the trend.

Brent Oil Price Forecast

Brent crude (UKOIL) is hovering at $73.20, down 0.10%, as it struggles to stay above the $73.40 pivot point. The 50 EMA at $73.44 and 200 EMA at $73.04 are in a tight range, underscoring indecision in the market.

Immediate resistance stands at $73.94, with further upside capped at $74.55. On the downside, support at $72.48 remains critical; a break below this level could trigger a move toward $71.89. The trend stays bearish below $73.40, with sellers maintaining pressure.

However, a decisive break above the pivot and the 50 EMA could shift momentum, attracting buyers and targeting higher levels.