Oil retreated on Monday after Novorossiysk resumed loadings, reversing last week’s gains driven by a temporary halt that disrupted about 2% of global supply. Although flows have restarted, ongoing geopolitical tensions keep traders cautious as the risk of further infrastructure disruptions lingers.
At the same time, OPEC+ output increases and a projected market surplus through 2026, according to ING, continue to anchor prices near the $60 mark, with expected swings inside a narrow $5 range.
Speculative positioning reflects this uncertainty, with Brent net longs rising by 12,636 lots amid supply-risk hedging.
Natural gas is stabilizing near $4.49, holding inside a rising channel that has guided price higher since late October. The lower boundary is providing support near $4.42, where buyers stepped in again after the recent pullback.
The 20-SMA remains beneath price, showing continued short-term strength, while the 200-SMA sits much lower around $4.11, reinforcing a supportive broader trend.
Momentum has softened, with the RSI hovering around mid-40s, suggesting consolidation rather than a clear shift in direction. A break above $4.69 would reopen the path toward $4.86, while a close below $4.42 could expose $4.27 as the next downside level. Until then, natural gas is likely to stay inside this gradual upward structure.
WTI crude is consolidating near $59.40, sitting between a descending trendline from the October highs and the rising trendline forming the lower boundary of a broader symmetrical structure. Price continues to trade below the 200-SMA, keeping the medium-term bias soft, while the 20-SMA has acted as short-term resistance over the past few sessions.
The recent rejection at $60.43 shows sellers defending the upper range, and momentum remains limited with the RSI hovering around the mid-40s. A close below $58.27 could open the way toward $57.35, while a break above $60.43 would shift focus back to $61.26.
Until either side breaks, WTI is likely to stay range-bound within this tightening pattern.
Brent crude is trading around $63.80, holding inside a tightening symmetrical formation defined by a descending trendline from the October high and a rising base from mid-October. Price remains below the 200-SMA, keeping the broader trend soft, while the 20-SMA is acting as short-term resistance near $64.20.
The recent rejection from $65.33 shows sellers still active at the upper boundary. Momentum is steady but muted, with the RSI hovering near the mid-50s and showing no strong directional bias.
A close below $63.29 may guide Brent toward $62.33, while a break above $64.26 would shift focus back to $65.33. Until one of these levels gives way, the market is likely to stay inside this narrowing structure.
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.