Natural Gas and Oil Forecast: Risk-Off Recedes—Will Energy Prices Stabilize or Slide?

Market Overview

WTI crude futures fell over 1% to $65.60 per barrel on Tuesday, extending a 7% drop from Monday, as easing geopolitical tensions reduced the perceived threat to global supply. The retreat came after de-escalation efforts calmed fears of disruption near the Strait of Hormuz, a critical artery for roughly 20% of the world’s oil shipments.

With no casualties reported from recent missile activity, traders reassessed risk exposure, triggering broader declines in both oil and natural gas markets. Volatility has since moderated, with futures reacting more to technical breakdowns and demand concerns than to immediate geopolitical shock.

Natural Gas Price Forecast

Natural gas (NGN2025) is trading at $3.645, having broken sharply below both its ascending price channel and key moving averages. The drop began with a bearish engulfing candle near $4.10, followed by consistent red candles that signal strong downside momentum.

Price has slipped below the 50-EMA at $3.842 and the 200-EMA at $3.761, both of which now act as overhead resistance. The green pivot point at $3.717 was also breached without hesitation. With no bullish reversal patterns in sight—no hammer, no doji, no bullish divergence—the trend remains heavy.

Immediate support lies at $3.622, followed by $3.550. Unless bulls reclaim $3.717 and close above $3.788, the bias remains bearish.

WTI Oil Price Forecast

WTI crude is trading near $65.60 after a sharp breakdown from the $72.88 level, where it failed to hold above the 50-EMA at $71.54. The recent price action carved out three consecutive bearish candles—commonly referred to as a Three Black Crows pattern, indicating sustained selling pressure.

The move sliced through both the ascending trendline and the 200-EMA, now at $68.72, flipping both into resistance. A small-bodied candle with a long lower wick near $64.34 suggests some buyers stepped in, but no follow-through yet confirms a reversal.

The pivot point sits around $67.72. Immediate resistance stands at $68.72, followed by $70.35. Support rests at $64.34, then $62.14. Until bulls reclaim $68.72, downside risk remains the dominant theme.

Brent Oil Price Forecast

Brent crude has plunged to $68.48, breaking below both the 50-EMA ($74.71) and 200-EMA ($71.08) with force. The collapse followed a clean rejection at $79.00, where a sharp bearish engulfing candle kicked off a high-volume breakdown. The price sliced through ascending trendline support and violated the pivot at $70.73, flipping it into resistance.

Price action now hovers near a demand zone but lacks any reversal pattern, no hammer, no bullish engulfing. Momentum is firmly bearish. Immediate resistance lies at $70.73, followed by $72.53. Support levels to watch are $66.40 and $64.00.