Natural Gas and Oil Forecast: Traders Eye $60 Oil and $3.70 Gas Amid Tightening Outlook

Market Overview

WTI crude oil climbed to $58.26 per barrel, supported by a 3 million-barrel drop in U.S. inventories, the first decline in four weeks, according to API data. Gasoline and distillate stockpiles also fell, signaling stronger fuel demand.

However, record global seaborne storage of 1.24 billion barrels, as reported by Vortexa, underscores ongoing oversupply risks. The U.S. Energy Department’s plan to add 1 million barrels to its strategic reserves adds a marginal tightening effect.

While geopolitical tensions continue to elevate risk premiums, energy markets remain constrained by weak demand growth and persistent production surpluses, leaving prices in a fragile equilibrium.

Natural Gas Price Forecast

Natural Gas futures are trading near $3.51, consolidating after a strong rebound from $2.99. The price is testing a key descending trendline around $3.55, with resistance at $3.65. A close above this zone could signal a breakout toward $3.76, while failure to clear it may lead to short-term profit-taking toward $3.42 or $3.30.

The RSI at 80 shows overbought conditions, hinting at limited upside in the immediate term. Both the 50-EMA ($3.22) and 200-EMA ($3.26) have turned supportive, reflecting strengthening bullish momentum.

Overall, while the broader trend is improving, traders should watch for a possible pullback before the next leg higher.

WTI Oil Price Forecast

WTI crude oil is trading near $58.26, showing signs of recovery after bouncing from support at $57.44. The price has broken above its descending channel and the 50-EMA ($57.52), hinting at improving short-term sentiment. The next resistance is seen at $59.10, followed by $60.17, where sellers may re-enter.

The RSI at 63 indicates growing bullish momentum but not yet overbought, suggesting room for further upside. If prices hold above $57.40, a continuation toward $59 looks likely.

However, a close back below that level could revive bearish pressure, targeting $55.90. Overall, WTI appears to be in early recovery mode but still faces hurdles below the 200-EMA ($59.70).

Brent Oil Price Forecast

Brent crude oil is trading near $62.33, breaking above its descending trendline and the 50-EMA ($61.53) — a sign of short-term recovery. The breakout suggests improving momentum, with the next resistance seen at $63.04, followed by $63.94. If buyers sustain control above $61.70, a move toward the 200-EMA ($63.67) could follow.

The RSI at 63 signals moderate bullish strength, though overbought territory remains distant, leaving room for further gains. However, failure to hold above $61.68 may trigger a retest of $60.34 or $59.36.

Overall, Brent shows early signs of trend reversal, but confirmation above $63 is essential to validate a shift from consolidation to sustained bullish momentum.