Natural Gas and Oil Forecast: Will China’s Demand Surge Keep Prices Elevated?

Market Overview

Crude oil prices remain on edge as geopolitical tensions, trade uncertainties, and shifting global demand continue to shape market sentiment. Brent and WTI crude saw modest gains, supported by rising instability in key regions and China’s latest stimulus efforts, including increased household spending and investment incentives.

China’s crude oil throughput jumped 2.1% in early 2025, reinforcing expectations of higher energy demand. However, downside risks persist, with concerns over slowing global growth and new tariffs impacting long-term demand.

Analysts warn that oil prices could slip to the mid-$60s if supply outpaces demand. Meanwhile, potential easing of sanctions on Russia could further weigh on prices by increasing global crude supply.

Natural Gas Price Forecast

Natural Gas (NG) is trading around $4.06, slipping 0.12% on the session as traders navigate key technical levels. The 50-day EMA at $4.16 suggests resistance overhead, while the 200-day EMA at $3.90 highlights a broader uptrend.

The pivot point at $3.97 is a critical level—staying above it keeps the bullish bias intact, while a break below could invite selling pressure toward $3.75 and $3.51. On the upside, $4.22 serves as immediate resistance, with a breakout opening the door for a move toward $4.43.

For now, natural gas is consolidating, but the upward trendline supports a buying bias. Traders should watch for a break above $4.22 to confirm momentum or a drop below $3.97 to signal potential downside risk.

WTI Oil Price Forecast

WTI crude oil (USOIL) is trading at $67.65, dipping 0.01%, as it struggles to gain momentum. The 50-day EMA at $67.33 is providing short-term support, while the 200-day EMA at $69.47 signals a broader downtrend.

The pivot point at $67.08 is a crucial level—staying above it keeps the bullish bias intact, with resistance at $68.52 and $69.46 as potential upside targets. A break above $68.52 could accelerate gains.

On the downside, immediate support rests at $66.39, and a drop below this could expose $65.27. For now, oil remains in a consolidation phase, but the upward trendline favors a buying bias. A decisive move above $68.52 or below $67.08 will determine the next direction.

Brent Oil Price Forecast

Brent crude (UKOIL) is trading at $71.38, down 0.03%, as it faces resistance near the pivot point at $71.75. The 50-day EMA at $70.75 is offering short-term support, while the 200-day EMA at $72.91 suggests broader selling pressure.

A triple top pattern near $73.38 is limiting upside movement, making it a key resistance level. If Brent breaks above $71.75, it could test $73.38 and $74.89, but failure to do so may reinforce bearish sentiment.

On the downside, immediate support sits at $69.87, with $68.28 as the next major target. Brent remains bearish below $71.75, and a drop under $69.87 could trigger further selling pressure.