Natural Gas and Oil Forecast: Will Cold Weather Boost Heating Fuel Demand?

Market Overview

Natural gas and oil markets are witnessing heightened volatility as geopolitical tensions and economic uncertainty fuel fluctuations in demand and pricing. Oil prices recently surged to two-month highs, driven by hopes for global policy measures aimed at stimulating growth.

However, subdued factory activity in key regions like Asia, Europe, and the U.S. highlights ongoing economic challenges. Analysts anticipate central banks will implement supportive policies to revive growth, boosting fuel consumption.

Meanwhile, weather forecasts signaling a potential cold snap in the U.S. and Europe may increase demand for heating fuels, adding complexity to an already dynamic energy landscape.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $3.43, down 2.53% for the day, signaling a bearish sentiment after breaking below its key pivot point at $3.61. The 4-hour chart reveals a bearish breakout from an upward channel, suggesting further downside potential.

Immediate support is seen at $3.35, with the next level at $3.16, where buyers may step in. On the upside, $3.61 serves as the first resistance, followed by $3.92 and $4.20.

The 50-day EMA at $3.50 has turned into a resistance, reinforcing the bearish bias, while the 200-day EMA at $3.09 reflects a longer-term support zone. A sustained move below $3.35 could accelerate selling pressure, but a break above $3.61 may revive bullish momentum.

WTI Oil Price Forecast

WTI Crude Oil (USOIL) is trading at $73.12, up a modest 0.10%, reflecting a continuation of its bullish momentum after breaking above the pivot point at $72.70. The 4-hour chart indicates strong buying interest, supported by a breakout from an upward channel.

Immediate resistance is positioned at $73.72, with the next target at $74.87, as traders eye these levels for potential upside. On the downside, support is firm at $71.71, with a safety net at $70.75.

The 50-day EMA at $71.08 aligns with the bullish trend, while the 200-day EMA at $70.04 underscores strong long-term support. A sustained move above $73.72 could pave the way for additional gains, while a break below $72.70 might signal bearish pressure.

Brent Oil Price Forecast

Brent Crude Oil (UKOIL) is trading at $75.92, edging up 0.08% as it builds on bullish momentum following a breakout above the pivot point at $75.85. The 4-hour chart highlights strong buying interest, supported by the price holding above key support levels.

Immediate resistance is at $76.89, with the next target at $77.90, as traders watch for sustained bullish activity. On the downside, support is established at $75.14, with a deeper floor at $73.95.

The 50-day EMA at $74.22 reinforces the bullish sentiment, while the 200-day EMA at $73.51 provides robust long-term support. A decisive move above $76.89 could extend gains, while slipping below $75.85 might signal a short-term pullback.