Natural Gas, WTI Oil, Brent Oil Forecasts – WTI, Brent on Pace for Monthly Gains Amid Middle-East Tensions

Natural Gas

U.S. natural gas futures are trading higher late Monday after earlier fluctuations. With production rebounding and temperatures rising, the market saw volatility. According to NatGasWeather, June 24-30 will see strong high pressure dominating the southern U.S. with highs in the 90s and 100s, while the northern U.S. will have highs in the 70s and 80s. This results in high to very high national demand for natural gas, supporting the current bullish trend in futures.

Technically, the market is in a position to post only its second gain in eight sessions so clearly momentum is to the downside. Possibly the most attractive level for new buyers is the support zone defined by $2.551 to $2.500. On the upside, the first resistance barrier is $2.794 to $2.850, followed by $3.020 to $3.159.

WTI Oil

West Texas Intermediate (WTI) crude oil futures rose 1% on Monday, driven by strong gasoline demand in the U.S. This increase is despite a recent pullback, with WTI ending the week nearly 3% higher and set for a 6% monthly gain. Analysts highlight the summer fuel demand surge and predictions of falling global inventories as key factors. The highest gasoline consumption since the pandemic ended further supports prices, though a dip below $81 per barrel could trigger fund liquidations.

Resilient WTI crude oil shrugged off early selling pressure and is now testing it highest level since May 1. The daily chart shows plenty of room to the upside with $83.53 to $84.52 the best upside target. Support is $80.30 to $79.06. Additionally, the sustained move over the 50-day moving average at $79.30 is helping to provide additional support and direction.

Brent Oil

Brent crude oil futures increased by 1% on Monday, supported by escalating geopolitical tensions in the Middle East. Despite a Friday decline, Brent closed the week nearly 3% higher and is on track for a 5.4% monthly gain. The conflict between Israel and Hezbollah, with threats of war and troop movements, has heightened supply risks. Analysts expect these tensions, along with anticipated drops in global inventories, to continue supporting prices, though market volatility remains high.

UK Oil is also trying to recover from an earlier setback on Monday. However, this market is struggling to overcome resistance at $84.45 to $85.10.

The market is holding above the 50-day moving average at $83.75, which is helping to drive some of the momentum. However, traders should also note the possibility of a steep decline if it fails as support.