Natural Gas and Oil Forecast: Will Brent Rebound or Extend Losses Below $74.75?

Market Overview

Natural gas and oil markets face downward pressure as geopolitical tensions and a strengthening U.S. dollar weigh on demand. A firmer dollar makes dollar-denominated commodities like oil more costly for international buyers, limiting buying interest.

Additionally, U.S. crude inventories have increased more than expected, signaling weaker demand.

Analysts note that while recent sessions saw gains in oil prices, the current geopolitical climate and currency shifts could lead to volatility and downside risks in the energy sector, impacting both immediate market sentiment and longer-term demand for oil and natural gas.

Natural Gas Price Forecast

Natural Gas (NG) prices are holding steady at $2.77, up 0.22% on the day, showing signs of support just above the $2.65 pivot level. The $2.65 area is key: if prices fall below it, we could see bearish momentum, with the next support levels at $2.60 and $2.52.

On the upside, immediate resistance lies at $2.70, followed by $2.75 and $2.82, which could offer hurdles for further gains.

The 50-day EMA at $2.72 is providing short-term support, while the 200-day EMA at $2.67 reinforces a slightly bullish bias if prices remain above these averages. In short, a move above $2.70 could signal more bullish interest, but a drop below $2.65 would likely confirm a bearish outlook.

WTI Oil Price Forecast

USOIL is trading at $70.88, down 1.44% on the day, as prices dip just below the pivot level at $71.34. This pivot point is important; if prices stay below it, the outlook leans bearish, with immediate support around $70.39 and further support at $69.87 and $69.49.

On the upside, resistance stands at $71.81, with additional levels at $72.31 and $72.77.

The 50-day EMA at $71.35 reinforces this bearish bias if prices remain under it, while the 200-day EMA at $70.37 provides a safety net for buyers. Simply put, if oil climbs above $71.34, we might see bullish interest return, but staying below keeps the trend in favor of sellers.

Brent Oil Price Forecast

UKOIL (Brent) is trading at $74.33, down 2.07% today, putting pressure on the key pivot level of $74.75. If prices stay below this point, the outlook remains bearish, with immediate support at $73.95 and additional levels at $73.56 and $73.19.

On the upside, resistance at $75.48 could prove challenging, with further resistance at $76.08 and $76.49.

Both the 50-day EMA at $75.06 and the 200-day EMA at $75.09 suggest a bearish trend while prices remain below these levels. Essentially, UK oil needs to reclaim $74.75 for a potential shift toward a bullish outlook, but as it stands, staying under this mark keeps sellers in control.