WTI crude oil steadied around $69 per barrel on Friday, capping a volatile week shaped by intensifying geopolitical tensions and a wave of new U.S. trade tariffs. While oil is set for a 6% weekly gain—its strongest since early June—short-term sentiment remains cautious.
Market participants are pricing in the dual threat of restricted global crude supply and softer demand due to tariff-driven inflation. A new set of U.S. import duties, ranging from 10% to 41%, raised concerns about slower economic growth, especially among major oil-importing economies.
These crosswinds leave oil and natural gas markets highly sensitive to further geopolitical disruptions.
Natural Gas (NGU2025) is trading near $3.096, attempting to break above a descending trendline that has capped prices since mid-July.
While the recent bounce from $2.987 signals some buying interest, momentum remains weak as the price struggles below the 50-EMA ($3.108) and 100-EMA ($3.182).
The horizontal barrier at $3.115 is a key inflection zone. A sustained move above this could open the door toward $3.233 and $3.344. Conversely, failure to hold above $3.09 may result in another retreat toward $2.987 and potentially $2.901.
WTI crude oil is trading at $69.19, showing signs of consolidation near the 0.236 Fibonacci retracement level at $69.55. Price action has remained above the 50-EMA ($68.61) and 100-EMA ($67.83), suggesting near-term support is intact.
However, repeated failures to break above the $70.49 high point have led to a loss of bullish momentum. A close below $68.97 (Fib 0.382) could trigger a deeper pullback toward $68.03 and $67.36.
Conversely, sustained bids above $69.50 may renew upside pressure. The rising trendline support remains key; a decisive break below it would invalidate the current structure.
Brent crude is trading at $71.65, holding just above the key support level at $71.00 and the ascending trendline from July 24. Price action has slowed after failing to sustain momentum above $72.79 resistance, with recent candles reflecting reduced volatility and indecision.
The 50-EMA ($71.02) and 100-EMA ($70.28) are still trending upward, providing dynamic support beneath the structure. A break below $71.00 would weaken the bullish setup and expose downside toward $69.85 and $68.85. To resume the rally, Brent must reclaim $72.79 on strong volume.
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.