Natural Gas and Oil Forecast: Crude Jumps on Inventory Draw, Trade Optimism

Market Overview

Crude oil prices climbed above $65 per barrel, snapping a four-day slide, as energy markets reacted to easing trade tensions and improving supply data. Optimism surrounding a potential US-EU trade pact has helped improve global demand sentiment, mitigating fears that prolonged tariff disputes could weigh on oil consumption.

Supporting the rally, U.S. crude inventories fell by 3.2 million barrels, exceeding forecasts and underscoring firm demand. Gasoline stockpiles also dropped by 1.7 million barrels.

As geopolitical tensions persist, traders are watching upcoming diplomatic talks that could impact natural gas flows and the dynamics of sanctioned oil trade.

Natural Gas Price Forecast

Natural gas futures (NGQ2025) are attempting a recovery after hitting a key Fibonacci support at $3.05, rebounding slightly to $3.096. The 4-hour chart shows prices holding the 0% Fib retracement zone, while the next upside hurdle lies at $3.15, which aligns with the 23.6% Fib level.

A clear move above this could pave the way toward $3.19 and $3.27. However, downside pressure persists, with price still trading below the 50-EMA ($3.33) and 100-EMA ($3.41).

Unless bulls reclaim those moving averages, the broader trend remains bearish. A breakdown below $3.05 could send prices back toward $2.98 or even $2.90.

WTI Oil Price Forecast

WTI crude oil (USOIL) has broken out of a falling wedge pattern on the 2-hour chart, signaling potential bullish momentum. After finding support near $64.24, price surged past the $65.80 resistance zone and now trades above the 50-EMA ($65.75) and just under the 100-EMA ($66.24).

This bullish crossover hints at a shift in short-term trend, with buyers now targeting the next resistance at $66.43, followed by $67.10. If momentum holds, a test of the $67.84 zone is likely.

However, failure to stay above $65.80 could see price retest $64.89. Traders will look for volume confirmation and price behavior around $66.24 to gauge continuation or a possible fakeout.

Brent Oil Price Forecast

Brent crude oil (UKOIL) is gaining momentum after a strong bullish breakout above $68.50, now trading near $69.06. The 2-hour chart shows price lifting above both the 50-EMA ($68.76) and 100-EMA ($68.89), indicating renewed buyer strength.

With price breaching the $69.16 resistance zone, the next upside targets lie at $69.58 and $70.16, followed by the descending trendline near $70.77. If the current breakout holds, short-term bullish continuation is likely.

A failed retest below $68.50 could weaken momentum and invite sellers. Traders will monitor volume and price behavior at $69.58 for signs of exhaustion or further acceleration toward $71.