Natural Gas and Oil Forecast: Will OPEC+ Cuts Balance Weak Demand in 2025?

Market Overview

Oil prices declined in Asian trading on Thursday as the U.S. Federal Reserve signaled a slower pace of interest rate cuts for 2025, raising concerns about potential impacts on economic growth and energy demand.

While U.S. crude stocks fell by 934,000 barrels last week and exports surged to 4.89 million bpd, these gains were tempered by weaker-than-expected global oil demand growth.

Analysts predict the demand-supply balance could remain unfavorable in 2025, even with OPEC+ production cuts. Lower-than-anticipated demand in early December and revised growth forecasts have added to market uncertainties, keeping energy prices under pressure.

Natural Gas Price Forecast

Natural Gas (NG) prices are trading at $3.21, gaining 0.69% during today’s session. The market appears to be consolidating below the pivot point of $3.39, indicating that bullish momentum has yet to fully materialize.

Immediate resistance is at $3.56, followed by $3.66, while support levels are found at $3.28 and $3.15. The 50-day EMA at $3.32 acts as a short-term barrier, while the 200-day EMA at $3.22 offers structural support.

A sustained move above $3.39 would signal a bullish breakout, potentially driving prices toward the $3.56 level. However, a break below the pivot could trigger sharp selling, with $3.15 as the next downside target.

WTI Oil Price Forecast

U.S. crude oil (USOIL) prices are trading at $69.49, up 0.10% in a steady session. The market is testing key levels near the pivot point at $69.43, which aligns closely with the 200-day EMA at $69.45, suggesting a critical inflection zone. Immediate resistance is marked at $70.70, with further gains targeting $71.46.

On the downside, support levels are located at $68.79 and $67.87. The 50-day EMA at $69.86 highlights resistance to short-term upside momentum.

However, an upward trendline reinforces a buying bias above $69.43. A clear move above this pivot could propel oil prices toward $70.70, while a break below $69.43 risks triggering sharp selling pressure.

Brent Oil Price Forecast

Brent crude oil (UKOIL) is trading at $72.92, up 0.10% for the day. The price is hovering just above the pivot point at $72.81, supported by an upward trendline, signaling a cautious but positive sentiment. Immediate resistance is set at $73.77, with the next target at $74.55. On the downside, support levels to watch are $72.27 and $71.47.

The 50-day EMA at $73.37 and the 200-day EMA at $73.07 create a technical barrier, underscoring the importance of breaking above these levels for sustained bullish momentum. Holding above $72.81 could drive prices higher toward $73.77, while a break below risks a sharper correction toward $72.27.