Natural Gas and Oil Forecast: WTI Holds at $71 Amid Strong Demand from China and India

Market Overview

WTI crude oil futures hovered near $71 per barrel on Monday, sustaining a two-week high as geopolitical tensions heightened concerns about potential supply disruptions.

Last week, oil prices posted their strongest gains in nearly two months, driven by fears of instability in major oil-producing regions. Simultaneously, rising demand from China and India provided further support.

China’s crude imports surged in November due to lower prices, while Indian refiners increased throughput by 3% year-on-year to meet growing export needs.

This combination of supply concerns and robust demand is expected to sustain upward pressure on oil prices in the near term.

Natural Gas Price Forecast

Natural Gas (NG) prices are trading at $3.51, up a strong 7.17% in today’s session. This surge comes after prices completed a 50% Fibonacci retracement near $3.12, followed by a sharp rebound. The pivot point at $3.36 has acted as a key support level, helping buyers regain momentum.

Currently, the price is testing immediate resistance at $3.57, with further targets at $3.68 and $3.79 if bullish momentum continues. The 50 EMA at $3.20 and the 200 EMA at $2.94 provide additional support, reinforcing a bullish structure.

However, a decisive break below $3.36 could trigger selling pressure, pushing prices toward $3.23 or even $3.12. The trend remains bullish, but traders should watch key resistance closely.

WTI Oil Price Forecast

U.S. crude oil (USOIL) is trading at $70.93, slightly down 0.26% as it hovers near the lower end of an upward channel. Immediate support sits at $69.48, with the 50-day EMA at $69.87 offering dynamic assistance, reinforcing the bullish structure.

A bounce off these levels could push prices toward immediate resistance at $71.62, with targets at $72.55 and $73.35 if momentum strengthens.

The pivot point at $72.58 is key; a breakout above this could signal further upside. However, a decisive drop below $69.48 may expose prices to $68.62 or even $67.84.

Traders should watch the $70.60 level closely, as it currently underpins the buying trend within the channel.

Brent Oil Price Forecast

Brent crude oil (UKOIL) is trading at $74.87, down 0.24%, as it consolidates near the pivot point at $74.57. The price is holding above key support at $73.75, with the 50-day EMA at $73.89 and the 200-day EMA at $73.47 providing additional support, reinforcing a cautiously bullish outlook.