Natural Gas and Oil Forecast: RSI Hints at Oversold Zone, Can Bulls Stage a Comeback?

Market Overview

WTI crude oil traded around $61.20 per barrel on Friday, stabilizing after sharp swings earlier in the week as geopolitical tensions eased following an Israel-Hamas ceasefire framework.

Despite reduced risk premiums, prices held modest weekly gains supported by new U.S. sanctions on over 50 entities linked to Iran’s oil trade. Meanwhile, EIA data showed a second straight rise in U.S. crude inventories, though stockpiles remain near seasonal lows.

OPEC+ maintained a cautious production increase, underscoring its restrained approach amid fragile global demand and shifting regional dynamics influencing both oil and natural gas markets.

Natural Gas Price Forecast

Natural gas is trading near $3.21, extending its decline after breaking below the rising channel that supported prices through late September. The 50-EMA at $3.34 and 200-EMA at $3.33 now act as resistance, confirming a short-term bearish trend.

Price has formed a sequence of lower highs and lower lows, reinforcing continued downside pressure. The RSI near 33 suggests conditions are approaching oversold but not yet signaling a reversal. If gas prices hold below $3.28, they may slide toward $3.16 and $3.07, where prior support levels sit.

On the upside, a recovery above $3.28–$3.30 could trigger a corrective bounce toward $3.39. For now, momentum remains weak, and buyers appear cautious ahead of fresh supply and storage data.

WTI Oil Price Forecast

WTI crude oil is trading near $61.20, hovering close to short-term support at $61.00 after multiple failed attempts to break above $61.80. The 50-period EMA at $62.11 and the 200-period EMA at $63.10 act as resistance, keeping the price capped below the descending trendline from $66.40.

Candlesticks show long lower shadows, suggesting buying interest near current levels but limited momentum to push higher. The RSI near 40 reflects mild bearish pressure without being oversold. If oil closes below $61.00, a move toward $60.40 or even $59.75 becomes likely.

Conversely, reclaiming $61.80 could spark a short-term rebound toward $62.70, but the broader trend remains weak unless buyers regain control above the $63.40 level.

Brent Oil Price Forecast

Brent crude oil is trading near $64.85, slipping below short-term support at $65.35 after breaking its ascending channel. The 50-EMA at $65.85 and 200-EMA at $66.77 now act as resistance, signaling that sellers remain in control. Price action shows a clear shift from higher highs to lower highs, reflecting weakening momentum.

The RSI at 38 suggests bearish pressure but not yet oversold conditions. If Brent fails to reclaim $65.30–$65.50, a drop toward $64.00 or even $63.40 is likely. Conversely, a rebound above $65.80 could open the path toward $66.90, though resistance remains strong near that level.