Geopolitical tensions continue to rattle energy markets, sending WTI crude oil futures up to $61.20 per barrel on Wednesday, reversing recent losses. Heightened concerns over potential new sanctions on a major energy producer have stoked fears of supply constraints.
Compounding the tightness, restrictions on a U.S. firm’s crude exports have shifted demand toward alternative suppliers. In parallel, anticipation of an OPEC+ meeting, where a production hike of 411,000 barrels per day may be tabled, adds to the volatility.
The complex interplay of global trade policies and supply risks keeps traders on edge, highlighting the fragile balance underpinning global energy prices.
Natural Gas Futures (NGM2025) are showing signs of consolidation after a sharp bounce from $3.561, now hovering near $3.742. Price action has formed a triangle pattern, with a breakout attempted above the $3.663 resistance and key trendline.
However, recent candles show hesitation at this breakout point, hinting at possible profit-taking or exhaustion. The 50-period EMA ($3.680) and 200-period EMA ($3.747) are closely tracking, indicating a potential battle between short-term bullish momentum and broader resistance.
A sustained close above $3.800 could signal a stronger upward move towards $3.954 and $4.077. Conversely, if the price dips back below $3.663, we could see a retest of support levels at $3.561 or $3.447. Traders should watch for a confirmed breakout or breakdown.
WTI crude oil prices are consolidating near $61.20, with the market struggling to break above the descending trendline drawn from recent highs. Price action has been capped by resistance around $61.35 and $62.12, while support levels are clearly defined at $60.22 and $59.29.
The 50-period and 200-period EMAs are nearly flat and converging, suggesting a lack of strong directional momentum. Candlestick formations in this zone show indecision, with wicks rejecting both upward and downward moves.
A decisive break above the trendline and $62.12 resistance could indicate bullish intent, with targets toward $63.01 and $63.86. However, a move below $60.22 might trigger further downside toward $58.50 and $58.32.
Brent Crude Oil (UKOIL) is trading near $63.88, consolidating below a key descending trendline that’s capping price action. Resistance levels to watch include $64.29 and $64.48, aligning with the 50- and 200-period EMAs.
The market is showing signs of indecision, reflected in the alternating bullish and bearish candles forming near this zone. Support is clearly marked at $62.93 and $62.03. If the price manages to break above $64.48 with strong momentum, we could see a move toward $65.27 or even $66.59.
On the downside, a failure to hold $62.93 could open the door for a test of deeper support near $61.13. Traders should look for clear breakout or breakdown signals before entering positions.
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.