Natural Gas, WTI Oil, Brent Oil Forecasts – Crude Poised to Move Higher, While NatGas Struggles

Natural Gas

Natural gas futures fell on Thursday due to increased production and low LNG demand from Texas maintenance. Prices stabilized after the EIA reported a 52 Bcf storage build, aligning with expectations but not prompting a strong market reaction. Storage levels reached 3,097 Bcf, significantly above last year’s levels and the five-year average. NatGasWeather forecasts high demand with strong high pressure and hot temperatures in the southern U.S. Overall, market sentiment remains mixed with a cautiously bearish short-term outlook.

Natural gas futures declined 2.00% to $2.673, struggling below the 50-day SMA at $2.447. Key resistance levels are at $2.794, $2.850, and $3.020, while support is seen at $2.551 and $2.500. The RSI at 49.61 suggests neutral momentum. The market outlook remains bearish unless prices break above key resistance levels.

West Texas Intermediate Crude Oil

WTI crude oil prices rose on Thursday, driven by escalating tensions between Israel and Hezbollah, which overshadowed soft U.S. gasoline demand. Israel’s military actions and increased cross-border attacks have raised fears of a broader conflict. Despite a surprising build in U.S. crude and gasoline inventories, which usually dampens prices, geopolitical risks provided support. Analysts warn that further escalation could significantly impact regional energy supplies, suggesting a cautiously bullish outlook for WTI in the short term.

Brent Crude Oil

Brent crude oil gained on Thursday amid rising geopolitical tensions in the Middle East, specifically between Israel and Hezbollah. Israel’s deployment of troops and increased border attacks have heightened fears of conflict. This geopolitical risk offset the bearish impact of unexpected U.S. crude and gasoline inventory builds. Additionally, concerns about potential disruptions to regional energy infrastructure added upward pressure on prices. Despite weak U.S. gasoline demand, the market sentiment for Brent remains cautiously bullish due to these risks.

Brent crude oil rose 1.11% to $85.35, surpassing the 50-day SMA at $83.54. Resistance is identified at $88.02 and $88.93, with support at $85.01 and $84.45. The RSI at 59.00 suggests moderate bullish momentum. A close above $85.35 could signal further gains, while a drop below support might indicate a potential retracement.