Natural Gas and Oil Forecast: Inventory Data Weighs on Oil While Gas Stabilizes Near $3.30

Market Overview

Oil prices eased following a four-day surge as rising supply indicates offset increased geopolitical tensions, that recently boosted the risk premiums. US crude inventories rose by 5.23 mn barrels last week, while gasoline and distillate stocks increased by 8.23 mn and 4.34 mn barrels, respectively, highlighting near-term oversupply pressures.

Additional weight on oil prices came from restored crude oil exports. This also includes the shipments totaling around 3.6 million barrels, hence easing concerns amid constrained global supply.

Still, broader geopolitical tensions continue to influence market sentiment. However, no major production hubs have been disrupted. The uncertainty has boosted Oil price expectations, with some predictions placing UK Brent near $70 per barrel over the coming three months.

For now, oil and natural gas markets appear caught between improving supply fundamentals and a persistent geopolitical risk premium that keeps volatility elevated.

Natural Gas Price Forecast

Natural gas is trading around $3.38 level on the 2-hour chart. It’s stabilizing following a solid selloff from early January highs. Taking a look at recent candlesticks, these are showing long lower wicks near $3.30 level. This signals that buyers are defending this support area.

However, the NG price is still capped under the descending trendline from December, which is keeping the overall structure bearish. The market is consolidating inside a narrowing triangle, with resistance near $3.43–$3.50 and downside support at $3.12. The 50 and 200 moving averages remain overhead, limiting upside momentum.

The leading technical indicator, RSI, is holding near 50, reflecting balance rather than trend strength. No bullish engulfing pattern has appeared yet, suggesting caution. Trade idea: Buy above $3.45, stop below $3.30, target $3.85.

WTI Oil Price Forecast

WTI crude trades near $60.75 on the 4-hour chart after a sharp push above the descending trendline that capped prices through December. Recent candles are showing solid bullish bodies followed by smaller consolidation candles. Typically, it signals momentum is cooling but not reversing. Moreover, the USOIL’s price has violated a rising wedge, which is turning the former resistance zone around $59.80–$60.00 into support.

The overall structure still holds within an ascending channel from mid-December. It’s with horizontal resistance around $61.50 and support at $58.70 mark. The leading technical indicator, RSI, is holding around 60, pointing to steady upside momentum without overbought conditions.

No bearish engulfing signals are visible yet. Overall, the trade idea now is to look for a buy on a pullback near $59.80, stop below $58.70, target $61.50.

Brent Oil Price Forecast

Brent crude trades near $65.07 on the 4-hour chart after a strong rally into a well-defined resistance zone. Recent candlesticks show long bullish bodies followed by smaller upper wicks, suggesting buying pressure is slowing near the descending trendline from October.

Price is testing the $65.80–$66.00 supply area, which also aligns with the upper boundary of a broad triangle structure. Former resistance is at around $62.90 mark which is now acting as key support level, while deeper support sits near $61.80 along the rising trendline.

RSI is near 70, signaling stretched momentum but not a confirmed reversal. No clear bearish engulfing pattern has formed yet. The trade idea is to buy on a pullback near $63.00, stop below $61.80, target $66.70.