Natural Gas, WTI Oil, Brent Oil Forecasts – Prices Surge on China Growth and Supply Risks

Brent Crude Oil Rises on Chinese Growth Outlook

Brent crude oil rose 2% as China’s economic growth prospects boosted market sentiment. President Xi Jinping’s commitment to implement more proactive policies in 2025 reinforced optimism about rising fuel demand. While manufacturing data showed slower growth, expansion in services and construction signaled that stimulus measures are starting to take effect. This bolstered confidence, offsetting the impact of rising U.S. fuel inventories. Investors remain focused on geopolitical risks and the potential for increased demand as the year progresses.

Brent crude tested resistance around $76.94, with additional barriers at $77.53. A successful break above these levels could push prices toward $80, though short hedging may emerge around $78, leading to potential profit-taking. Support is seen at $72.98, aligning with the 50-day moving average. The RSI at 64.43 points to strengthening bullish momentum, but prices remain below overbought conditions, suggesting room for further upside if key resistance levels are breached.

WTI Crude Oil Eyes Breakout as Inventories Decline

WTI crude oil climbed nearly 2%, driven by falling U.S. crude inventories and China’s growth initiatives. U.S. crude stockpiles fell by 1.2 million barrels, though this was less than the expected 2.8-million-barrel draw. Rising gasoline and distillate inventories tempered gains but failed to overshadow broader bullish sentiment. Traders are monitoring U.S. economic indicators and manufacturing data for signals that could drive further price action, with geopolitical risks also in focus.

WTI is approaching major resistance at $73.13, with a potential breakout target of $73.73. A push beyond this level could drive prices toward $76. Support sits near $69.66, marked by the 50-day moving average. The RSI at 64.45 reflects increasing bullish sentiment but suggests the potential for a short-term pullback if profit-taking occurs near resistance. Prices remain within a narrowing range, increasing the likelihood of a significant breakout in the near future.

Natural Gas Holds Steady as Russia Halts Exports

Natural gas prices held firm as Russia halted pipeline exports through Ukraine, heightening supply concerns across Europe. Although the EU arranged alternative supplies, Hungary continues to receive Russian gas via the TurkStream pipeline. This geopolitical tension adds uncertainty to the market, with winter demand expected to amplify any potential disruptions. European inventory levels appear stable for now, but further supply risks could drive prices higher.

Natural gas faced resistance near $4.20 but retraced to $3.66, where support levels are forming. The $3.59 level serves as a critical floor, with the 50-day moving average rising to $3.10, indicating continued bullish momentum. RSI at 59.91 suggests further upside potential without signaling overbought conditions. If prices hold above $3.66, a retest of the $4.00 level is likely. A drop below support could lead to further consolidation around the $3.10 area.

More Information in our Economic Calendar.