Natural Gas and Oil Forecast: WTI Bounces to $103, Brent at $110 — Will NatGas Reach $3.20?

Oil and Natural Gas Markets Steady as Ceasefire Holds

On May 20, 2026, Crude oil was mostly flat on May 20, 2026, with conditional U.S.-Iran truce remaining firm more than six weeks after its announcement with a steady increase of tanker throughput through the Strait of Hormuz. The reduction in the short-term geopolitical risk in the energy sector, which saw a surge of risk premiums in March and into April, now allows market participants to concentrate their attention on supply and demand. Crude futures (West Texas Intermediate, WTI, and International, Brent) are now reflecting a stable global market.

The supply and demand situation is now well-balanced with strong U.S. production levels, OPEC+ production decisions as well as supply disruptions, which have mostly been addressed and resolved to an extent but not entirely. Demand has been recovering but at a slower pace especially in some emerging economies.

Natural gas was relatively flat, supported by healthy storage levels in the U.S. and Europe during the spring, while truce has eased supply concerns for liquefied natural gas (LNG) shipments in the Middle East, putting a dampener on the global spot LNG price, while Asian and European demand has remained firm.

Oil and natural gas traders are waiting to see the weekly inventory data from U.S. Energy Information Administration as well as further statements from OPEC+. However, traders are also keeping an eye on developments surrounding the ceasefire. If the truce ends prematurely, markets will likely experience a similar surge in volatility seen earlier this year.

Natural Gas Futures Moves To $3.109, Breakout To $3.15-3.20

NG futures are $3.109 on the 2h chart in the NYMEX. The green candles have come in strong touch of the red MA in the vicinity of $2.95 while breaking out above the prior swing highs. The ascending white trendline is being respected with multiple bullish engulfing bodies forming.

The RSI is above 60 as it shows the current strong momentum in the market. Clear dominance of buyers from the volume profile can be seen here. $3.15 to $3.20 is expected next. Price structure is strongly bullish above $2.95.

Trade idea: Buy $3.109 to $3.20 and stop $3.00.

WTI Crude Oil Bounces To $103.69, Blue Ascending Channel Standing

WTI is $103.69 on the 2h chart. The green continuation candles have come back in touch of the red 50 MA in the vicinity of $102.80 as they bounce the blue ascending channel floor from the mid May lows. Price is printing higher highs/lows with a bullish engulfing body in the $102.50 support.

The recent upside has cleared $103.00 pivot as the RSI has risen to above 52 showing positive momentum. The white ascending trendline that started from April is acting as a dynamic floor to price. The 38.2% of the Fib retracement from the May swing at $100.52 has been defended by price so far.

The volume profile also shows confluence at $102.80 as buyers have stepped in. Price structure is remaining bullish above $102.50 as it moves cleanly up the ascending channel towards $105.15 resistance.

Trade idea: Buy $103.69 to $105.15 and stop $102.50.

Brent Crude Oil Consolidates at $110.69, Blue Channel Upper

Brent is $110.69 on the 2h chart. The green rejection wicks have come in touch of the upper blue ascending channel line as they stayed above the red MA in the vicinity of $108.30. Higher lows have formed since the $103 low with a clear bullish structure.

The RSI is hovering around 55 as it shows steady upside momentum. The Fib extension levels are currently projecting $112.12 to the upside. The volume profile confirms the move with absorption at the channel midline. Price structure is remaining bullish above $108.31 as it tests the channel ceiling.

Trade idea: Buy $110.69 to $112.12 and stop $109.50.