Geopolitical tensions continue to weigh on energy markets, pulling WTI crude back toward $58 per barrel after a brief rebound. Investors are reassessing the supply outlook as diplomatic efforts raise the possibility of easing restrictions on Russian crude, though any meaningful increase in shipments is expected to take time.
Traders are also focused on this week’s OPEC+ meeting for clues on future production policy, following the group’s recent pause on planned output hikes.
With crude heading for a fourth consecutive monthly loss, expectations of a widening supply surplus remain the dominant force shaping near-term oil and natural gas forecasts.
Natural gas is holding above the rising trendline near $4.55, keeping the broader uptrend intact despite recent volatility. Price is back above the 50-EMA, showing improving short-term momentum, while the 200-EMA at $4.35 continues to act as firm underlying support.
The RSI sits around 53, signaling stable sentiment without overbought pressure. If buyers push NGF above $4.70, momentum could extend toward $4.80 and $4.95, where resistance has repeatedly capped rallies.
If price slips below $4.55, the trendline may be retested, with the next downside levels at $4.35 and $4.20. As long as the trendline holds, natural gas remains biased to the upside.
WTI crude remains under clear downside pressure, moving inside a well-defined descending channel. Price is struggling below $59.05, where both the 50-EMA and the channel’s upper boundary continue to cap recovery attempts. Each bounce has produced lower highs, showing sellers are still in control.
Support at $57.30 is the next key level, and a break below it could expose $56.09. The RSI is sitting near mid-range, signalling neutral momentum but no real buying strength yet.
If WTI closes above $59.05, the first sign of relief could appear, opening room toward $59.96 and possibly the 200-EMA near $60.85. Until then, the trend stays tilted lower inside the channel.
Brent crude continues to drift lower inside a clear descending channel, with sellers defending every bounce. Price is struggling beneath $62.68, where both the 50-EMA and the channel’s upper boundary intersect, creating firm resistance.
Momentum remains soft as the RSI holds below 50, showing limited buying strength. If Brent rolls over from current levels, the next downside targets sit at $60.94 and $60.06, followed by stronger support near $59.35.
A break above $62.68 would be the first sign of relief, opening room toward $63.62, but until that happens, the broader trend stays tilted to the downside with sellers in control.
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.