Natural Gas and Oil Forecast: Rising Demand and Supply Cuts Lift Energy Prices

Market Overview

Oil prices climbed over $1 per barrel on Friday, partially offsetting weekly losses as geopolitical tensions in the Middle East fueled concerns about potential supply disruptions.

This renewed uncertainty in the region, combined with expectations that OPEC+ may delay its planned production increase, has provided additional support to energy markets. Despite the recent gains, oil remains on track for a weekly loss of over 1%, struggling to recover from Monday’s 6% drop.

Meanwhile, U.S. gasoline stockpiles hit a two-year low amid rising demand, while China’s manufacturing growth signals increased energy consumption, adding further upward pressure on oil and natural gas prices.

Natural Gas Price Forecast

Natural Gas (NG) prices are holding steady around $2.74, up just 0.04% as traders weigh the next move. The immediate pivot point sits at $2.72, which is key for gauging short-term direction. If prices break above this level, we could see a push toward the next resistance levels at $2.82 and $2.92, with an upper target around $3.00 if momentum builds.

On the downside, immediate support lies at $2.59, reinforced by the 200-day EMA, with further safety nets at $2.49 and $2.39.

The 50-day EMA, also at $2.72, aligns with the pivot, making it a critical level. Essentially, a hold above $2.72 could strengthen the bullish case, while a drop below would likely turn sentiment bearish.

WTI Oil Price Forecast

U.S. crude oil (USOIL) is trading at $70.65, up slightly by 0.27%. The immediate pivot point here is $70.76, which could set the tone for near-term moves. If prices push above this level, look for resistance at $71.24, then $71.81, with a potential cap around $72.31 if momentum strengthens.

On the downside, the first line of support sits at $70.13, with additional support at $69.48 and $68.92 if sellers step in. The 50-day EMA at $69.19 offers underlying support, while the 200-day EMA near $70.17 aligns closely with current levels, signaling indecision.

Essentially, if oil holds above $70.76, a bullish outlook strengthens; dropping below would shift the mood to bearish.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $75.91, up a strong 1.91% for the session. The key pivot point is $74.24, which serves as a crucial line in the sand. If prices stay above this level, it could support further gains, with immediate resistance at $74.73, then $75.10, and an upper target around $75.53.

On the downside, initial support sits at $73.56, with deeper levels at $72.99 and $72.39 if prices begin to retrace.

The 50-day EMA at $72.99 reinforces this support, while the 200-day EMA at $74.15 adds to the bullish outlook if prices hold above it. Essentially, holding above $74.24 keeps the bulls in control, while slipping below could invite sellers back in.