Natural Gas and Oil Forecast: Will Strategic U.S. Oil Purchases Halt Price Decline?

Market Overview

Rising geopolitical tensions have influenced oil and natural gas forecasts, as markets react to shifting demand concerns and strategic moves in the U.S. energy policy.

Following significant price drops, oil received some support from the U.S. plan to purchase up to 3 million barrels for its Strategic Petroleum Reserve, yet broader concerns about weaker demand growth persist.

Analysts suggest that while short-term supply fears are tempered, bearish fundamentals are likely to dominate the market outlook, especially with a lull in winter demand and sluggish economic recovery in China.

Inventory reports from the U.S. may further shape near-term sentiment.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $2.85, showing a modest dip of 0.28% on the day. Currently, the $2.86 level serves as a critical pivot point, and a move above this threshold could spark renewed bullish interest.

Immediate resistance lies at $2.92, followed by key levels at $3.00 and $3.08, which could act as targets for upward momentum.

On the downside, support is seen at $2.77, with additional cushions at $2.70 and $2.60. The 50-day EMA, sitting at $2.46, and the 200-day EMA at $2.48, underscore a slight bearish trend, hinting that Natural Gas may face continued selling pressure if it remains below the pivot.

WTI Oil Price Forecast

U.S. crude oil (USOIL) is hovering at $67.40, down 0.81% today, as bearish sentiment continues to weigh on prices. The pivotal level of $68.18 serves as a critical barrier, and a break above it could attract bullish momentum. Immediate resistance is seen at $68.85, with further levels at $69.72 and $70.65.

On the downside, support is positioned at $66.91, followed by $66.19 and $65.45, providing potential floors if selling pressure persists.

The 50-day EMA at $69.44 and 200-day EMA at $70.79 highlight a bearish trend, suggesting resistance to upward movement unless WTI decisively moves above $68.18.

Brent Oil Price Forecast

UKOIL (Brent) is trading at $75.91, up 1.91% today, but faces some resistance at $76.53 as it edges closer to the critical pivot point of $75.97.

If prices break and hold above this level, it could suggest a shift toward bullish momentum, with further resistance at $77.17 and $78.07.

Support is nearby at $74.97, with additional levels at $74.14 and $73.55. Both the 50-day EMA at $75.05 and the 200-day EMA at $75.23 reflect slight bearish pressure.

For now, Brent’s outlook hinges on whether it can decisively clear the $75.97 mark.