Natural Gas and Oil Forecast: Will Strong Dollar Pressure Limit Price Recovery?

Market Overview

Oil and natural gas prices are under pressure as geopolitical tensions disrupt supply chains and amplify concerns over global energy markets. A stronger U.S. dollar, trading near a two-year high, has compounded challenges by making dollar-priced commodities more expensive for international buyers.

Recent five-session gains in oil were buoyed by expectations of increased demand due to colder weather and fiscal stimulus measures in key economies.

However, looming sanctions and potential supply reductions from major producers are intensifying market uncertainty. Investors are also closely monitoring Federal Reserve updates and U.S. payroll data for further clues on energy demand trends.

Natural Gas Price Forecast

Natural Gas (NG) is trading at $3.584 on the 4-hour chart, rebounding from a key support level at $3.354. Prices are attempting to regain bullish momentum after briefly dipping below the 50 EMA, now at $3.495, which serves as an immediate resistance level. The 200 EMA at $3.111 remains a strong support for the longer-term trend.

Immediate resistance is observed at $3.607, with the next upside targets at $3.923 and $4.199. On the downside, support levels to watch include $3.354 and $3.164. The current bounce from the lower end of the channel suggests renewed buying interest, but a clear break above $3.607 is needed to confirm a stronger recovery.

WTI Oil Price Forecast

WTI Crude Oil (USOIL) is trading at $73.63 on the 4-hour chart, consolidating after breaking above the triple-top resistance, which now acts as a support near $72.87. This level aligns with the green demand zone, offering a strong cushion for buyers. The pivot point at $72.87 is critical for maintaining the current bullish momentum. Immediate resistance lies at $74.37, with the next upside targets at $75.15 and $76.15.

Technical indicators favor bulls, with the 50 EMA at $71.66 and the 200 EMA at $70.26 supporting the broader uptrend. A pullback toward the $72.87 zone could attract buyers, reinforcing the bullish outlook as long as prices stay above this level.

Brent Oil Price Forecast

Brent Crude Oil (UKOIL) is trading at $76.16 on the 4-hour chart, maintaining its bullish momentum after breaking above the descending triangle pattern. The breakout confirmed at $75.49 now serves as a critical support level, aligning with a strong demand zone. Immediate resistance lies at $76.89, with the next upside targets at $78.14 and beyond.

Technical indicators suggest bullish continuation, with the 50 EMA at $74.67 and the 200 EMA at $73.68 providing underlying support for the trend. A pullback to $75.49 could provide an opportunity for buyers to re-enter the market, strengthening the case for further upside as long as prices remain above this key support.