Natural Gas and Oil Forecast: Bulls Eye $65 Breakout as Traders Await OPEC and IEA Reports

Market Overview

WTI crude slipped below $61 per barrel on Wednesday, halting a three-day advance as traders awaited fresh market forecasts from OPEC and the International Energy Agency. Both reports are expected to outline the global energy balance through 2026 amid concerns of persistent oversupply.

The recent rally cooled despite optimism over a potential end to the US government shutdown, which had boosted demand expectations. Meanwhile, fresh sanctions have disrupted trade flows, with major producers redirecting exports to Asia.

The combination of geopolitical disruptions and uncertain supply dynamics is keeping energy markets volatile and investor sentiment cautious heading into year-end.

Natural Gas Price Forecast

Natural Gas are hovering near $4.56, testing the upper boundary of a rising wedge pattern that has guided prices higher since mid-October. This structure typically signals a potential loss of bullish momentum if resistance holds.

The RSI is hovering around 65, suggesting the market is nearing overbought territory, while the 20-EMA remains above the 50-EMA, keeping the short-term trend biased to the upside.

A break above $4.70 could invalidate the wedge and drive a push toward $4.86 and $5.06. Conversely, failure to clear resistance may trigger a pullback toward $4.27 or even $4.15, where trendline support and the 50-EMA converge.

WTI Oil Price Forecast

WTI Crude Oil ($USOIL) is trading near $60.80, consolidating just above the descending channel it recently broke out of. The price has managed to stay above both the 20-EMA and 50-EMA, suggesting short-term buying interest. However, momentum is slowing as the RSI retreats from overbought territory near 70, hinting that a brief pullback could occur.

If buyers defend the $60.50–$60.00 area, oil could attempt another push toward $62.50, a key resistance aligned with October highs. On the downside, failure to hold this support zone could drag prices back to $58.85, the lower boundary of the prior range.

Overall, crude remains cautiously bullish but needs stronger volume to confirm a sustained breakout above $61.00.

Brent Oil Price Forecast

Brent Crude Oil ($UKOIL) is trading around $64.90, consolidating just below the key resistance at $65.30, which aligns with a descending trendline from October highs. Price action has formed a rising triangle pattern, a structure that typically signals bullish continuation if the upper boundary is breached.

The 20-EMA has crossed above the 50-EMA, indicating improving short-term momentum, while the RSI near 65 suggests steady but not yet overextended buying pressure. If bulls manage a confirmed breakout above $65.30, the next upside targets are $66.70 and $67.70, matching prior reaction highs.

However, failure to hold above $64.10 could trigger a retest of the triangle’s base near $63.00. For now, Brent remains biased higher as long as it stays above the ascending trendline support.