Natural Gas and Oil Forecast: EU Tariff Drama and Supply Risks Rattle Oil Markets

Market Overview

WTI crude oil fell for a third straight session, dipping to $65.6 per barrel, as global trade uncertainty and geopolitical tensions cloud demand forecasts. Markets remain on edge amid ongoing EU-US trade negotiations ahead of the looming August 1 tariff deadline.

Although new European restrictions on Russian energy exports had a limited impact on supply sentiment, broader diplomatic developments continue to add pressure.

With oil markets already reacting to softening demand signals, investors are bracing for further volatility as talks across global power blocs evolve, while natural gas prices also face downside risk amid cooling momentum and macro headwinds.

Natural Gas Price Forecast

Natural gas (NGQ2025) has broken below the $3.33 support and is now trading at $3.287, down 0.81% on the day. The breakdown from the rising channel and sustained closes below the 50-EMA ($3.431) and 100-EMA ($3.445) indicate growing bearish momentum.

Sellers appear firmly in control, with the next support levels seen at $3.218 and $3.149. If the bearish pressure continues, price could retest the $3.082 zone.

To regain upward traction, bulls must push back above $3.33 and reclaim the $3.406 resistance.

WTI Oil Price Forecast

WTI Crude Oil (USOIL) is consolidating below $65.80, trading within a descending triangle on the 2-hour chart. The price faces strong resistance near the $65.80 level, which aligns with both the descending trendline and the 50-EMA ($66.47).

Sellers continue to defend this zone, keeping momentum tilted downward. If the price breaks below support at $64.89, it could open the door to further losses toward $64.24 and $63.65.

On the upside, a breakout above $65.80 could shift short-term sentiment, with potential upside targets at $66.43 and $67.10. Until a breakout occurs, WTI may continue to trade sideways, with traders watching for a decisive move to confirm the next trend direction.

Brent Oil Price Forecast

Brent Crude Oil (UKOIL) is trading at $68.69, showing resilience above the ascending trendline support near $68.38. The price remains trapped between converging support and resistance levels, forming a symmetrical triangle pattern.

A break below $68.38 could lead to a deeper pullback toward $67.66, while a push above $69.16 would shift momentum back in favor of the bulls. Both the 50-EMA and 100-EMA at $69.09 are acting as near-term resistance, capping upside moves.

Traders are watching for a breakout from this tightening structure, which may define the next major directional move. Until then, Brent may continue to consolidate in a narrow range with slight bearish pressure as long as it stays below the key EMAs.