Natural Gas and Oil Forecast: OPEC+ Supply Debate Hits Oil, Natural Gas Extends Rally

Market Overview

Crude oil futures slipped toward $63 per barrel, extending recent losses as energy markets grapple with both supply and demand headwinds. Traders remain focused on OPEC+ deliberations over potentially unwinding 1.65 million barrels per day of production cuts, equal to about 1.6% of global demand, a move that could weigh further on prices.

U.S. crude inventories unexpectedly rose by 0.6 million barrels against forecasts for a 3.4 million-barrel draw, underscoring signs of softer demand.

At the same time, natural gas prices have held firmer as geopolitical tensions heighten risk premiums, leaving energy markets caught between oversupply concerns and uncertain demand conditions.

Natural Gas Price Forecast

Natural gas futures are holding firm above $3.09 after a steady rebound from late August lows. Price action is supported by an ascending trendline and the 50-EMA at $2.99, while the 200-EMA at $2.96 has now turned into a strong base. Momentum remains positive, with RSI near 66, suggesting buyers are in control but approaching overbought levels.

Immediate resistance is seen at $3.13, followed by $3.22 and $3.29. A break above these levels could extend the rally further. On the downside, $3.03 is the first support, with the trendline and $2.96 providing deeper backing.

Overall, natural gas maintains a bullish bias, but traders may want to watch for a pullback before fresh upside continuation.

WTI Oil Price Forecast

WTI crude oil broke below its ascending trendline and the 50-EMA near $64.30, shifting momentum to the downside. Price is now holding around $63.20, close to the $63.00 support area. The 200-EMA at $64.18, which acted as a cap earlier, reinforces bearish pressure.

RSI sits near 30, showing oversold conditions but without a strong reversal signal yet. If $63.00 fails, the next support rests at $62.10, followed by $61.46. On the upside, recovery above $63.70 could bring a retest of $64.70, but the broader bias remains weak unless buyers reclaim both EMAs.

In short, bears remain in control, but oversold momentum suggests a possible short-term bounce before the next decisive move.

Brent Oil Price Forecast

Brent crude slipped below its rising channel support, now trading near $66.80. Both the 50-EMA ($67.86) and 200-EMA ($67.58) sit above price, confirming downside pressure after last week’s rejection at $69.27. The RSI has dropped to 31, close to oversold territory, suggesting momentum is stretched but not yet reversing.

Key support rests at $66.36, followed by $65.63 and $65.00. If these levels fail, the decline could extend further. On the upside, any rebound needs a close back above $67.50 to shift sentiment. Until then, the trend favors sellers, with rallies likely to meet resistance at the prior channel base.

In short, Brent is testing crucial support, and oversold readings hint at a fragile but possible bounce.