Natural Gas and Oil Forecast: Can Brent Hold $60.84 Support Amid Weak Demand?

Market Overview

Crude oil prices edged higher on Thursday, recovering from a $1 drop in the previous session, as traders weighed the impact of global economic uncertainties and shifting geopolitical dynamics.

The Federal Reserve’s cautious stance on interest rates, coupled with a stronger U.S. dollar, has added pressure to commodity markets, making dollar-denominated oil more expensive for international buyers.

Additionally, U.S. gasoline inventories climbed unexpectedly, signaling softer demand ahead of the peak summer driving season. Meanwhile, the OPEC+ coalition plans to ramp up production, potentially increasing supply pressures in the coming months.

Natural Gas Price Forecast

Natural Gas Futures are trading around $3.637, holding above a rising trendline that has supported the recent recovery. The 50-day exponential moving average (EMA) at $3.503 is providing additional support, reflecting a shift in short-term momentum after a prolonged downtrend.

Immediate resistance is at $3.721, a key level that, if breached, could open the path towards the next significant hurdle at $3.864. On the downside, initial support sits at $3.452, a critical pivot point that aligns with the recent trendline, while deeper support is found at $3.310, a level that has previously attracted strong buying interest.

For traders, a confirmed breakout above $3.721 could signal a potential rally toward the $3.864 level, while a failure to hold above $3.452 might trigger a retest of the lower support around $3.310, potentially reversing the recent uptrend.

WTI Oil Price Forecast

WTI Crude Oil is currently trading around $58.53, hovering below a descending trendline, signaling continued bearish pressure. The 50-day exponential moving average (EMA) at $59.05 acts as immediate resistance, while the 200-day EMA around $61.51 is a more substantial barrier, reflecting the broader downtrend.

The immediate support sits at $57.74, a critical level where buyers have previously stepped in, while the next key support lies at $55.35, a zone that could attract more significant demand if selling pressure intensifies. On the upside, clearing the $59.05 level could pave the way for a test of $61.51, aligning with the longer-term trend resistance.

For traders eyeing a potential breakout, a sustained move above $59.05 with volume confirmation would be a bullish signal, but failing to clear this level might push prices back toward $57.74.

Brent Oil Price Forecast

Brent Crude Oil (UKOIL) is trading around $61.36, sitting just below a descending trendline, indicating continued bearish pressure. The 50-day exponential moving average (EMA) at $62.29 is acting as immediate resistance, while the 200-day EMA remains higher, reflecting the broader downtrend.

The immediate support level is $60.84, a crucial pivot point where buyers have previously shown interest. A break below this could open the door to the next key support at $58.66, potentially triggering a deeper pullback. On the upside, clearing the $62.29 level would expose the $63.18 resistance, a key hurdle for bullish momentum.

For traders, a sustained move above $62.29 with volume confirmation would be a bullish signal, but failing to break this level might see prices retreat toward $60.84, reinforcing the bearish trend.