Crude oil and natural gas markets remain volatile as geopolitical tensions continue to shape supply and demand expectations. The extension of a U.S.-China tariff truce has eased pressure on energy prices, reducing fears of slower economic activity in two of the world’s largest consumers.
However, uncertainty lingers ahead of high-level diplomatic talks that could influence Russian energy flows. A breakthrough could increase global supply and cap prices, while a stalemate may trigger tighter sanctions, constraining exports and supporting values.
Traders are also awaiting key API and EIA inventory data for fresh signals on demand trends.
Natural gas futures are trading at $2.956, slipping after failing to hold above the $2.989 resistance zone. The 50-EMA ($2.999) and 100-EMA ($3.039) remain overhead barriers, with the broader structure still favoring sellers. Immediate support lies at $2.882, followed by $2.831, while a close above $3.010 is needed to shift momentum toward $3.084.
The RSI at 43.99 signals mild bearish pressure, though it is not yet in oversold territory. Price action suggests a consolidation phase between the EMA cluster and recent lows, with market direction likely determined by a breakout from this range.
A drop below $2.831 could expose $2.776, while sustained strength above $3.084 would target $3.150.
WTI crude oil is trading near $64.10, holding within a descending channel that has capped price action since late July. The 50-EMA ($64.43) and 100-EMA ($65.23) remain overhead, reinforcing short-term bearish pressure. A break above $64.42 could open a move toward $65.66, while rejection keeps the focus on $63.01 support.
RSI at 51.09 signals a neutral stance after recovering from oversold conditions, suggesting consolidation before the next directional move. For bulls, reclaiming $66.76 is key to shifting momentum, while bears will eye a close below $62.80 for further downside.
Brent crude oil is trading at $66.79, holding within a descending channel that has contained price action since late July. The 50-EMA ($67.14) and 100-EMA ($67.89) are capping upside momentum, with immediate resistance near $67.13. A sustained break above this level could pave the way toward $68.14, while rejection risks a move back to $65.88 and $65.20.
RSI at 50.90 reflects a neutral tone, suggesting indecision after a recent rebound from oversold territory. Bulls need to reclaim $69.19 to shift the broader bias upward, whereas a close below $64.99 would likely extend the downtrend.
Arslan is a finance MBA and also holds an MPhil degree in behavioral finance. An expert in financial analysis and investor psychology, Arslan uses his academic background to bring valuable insights about market sentiment and whether instruments are likely to be overbought or oversold.