Natural Gas and Oil Forecast: WTI Plunges 10% – Will the Hormuz Risk Return?

Oil and Natural Gas Outlook: Strait Disruptions Drive Volatility

West Texas Intermediate crude is bumping along at about $91 a barrel on March 24 after plummeting by a whopping 10.3% the day before – and this big drop shows just how fast the extra cost that comes with geopolitical worries can get stripped away. Just a few days before, prices were bouncing around between $100-$119 a barrel, as everyone was spooked about supply shortfalls. But then – tentative signs that the situation might not be as bad as everyone thought – and prices started to fall back on themselves.

The Strait of Hormuz is still super tight – with roughly 20% of the world’s oil flowing through it – meaning its hard to get oil out of several gulf countries, and that’s causing shipping costs and insurance to skyrocket.

US oil production is actually up around 13.6-13.7 million barrels a day, which does help ease some of the pressure. But markets are still super sensitive to any old news headline – and Brent oil is expected to stay above $95 in the short term. Of course, if the disruptions in the gulf ease off, prices will probably drop right back down to $70-$80. Meanwhile, natural gas markets are getting a little wild as well, as people worry about supply disruptions in the region, and that’s causing the prices of different commodities to go all over the place.

Natural Gas Price Forecast: NGJ2026 Holds $2.90 Support on 2H Chart

Natural Gas futures are trading at around $2.93 on the 2-hour chart after it bounced right back from the $2.87 support level. And right now it’s actually testing out this key demand zone around $2.95 which up till now has been both support and resistance.

The blue line – that’s our 200-Period Moving Average – is still sitting up above us at $3.05 which is our main resistance to overcome. Meanwhile our 50-Period Moving Average is trending downwards which is a clear sign that we’ve got some bearish pressure going on. But – and this is a big but – the ascending trendline from back in February is still holding firm which is a pretty clear sign that we’re looking at a neutral to slightly bullish structure.

Our Relative Strength Index is currently sitting at 42 which says our momentum is weak but we’re not yet in a state of extreme overselling.

If we do manage to get above $3.01 then we’re looking at a $3.08 and then a $3.15 target. But if we do break below $2.87 then we’ll have to be prepared for a drop down to $2.83 next.

WTI Oil Price Forecast: USOIL Holds $90 Support Amid Bearish Pressure

WTI Crude Oil (USOIL) is currently trading around $91.32 on the 2-hour chart after it rebounded from the $88.00 zone which just so happens to be the 200-Period Moving Average and an ascending trendline. While it’s popped back up from this low point, the price is still below its 50-Period Moving Average at $92.65 which is a pretty clear sign that bearish pressure is still active.

If we take a step back and look at the bigger picture, the overall shape of the market still looks pretty bearish. Lower highs below a descending trendline from that $116 peak confirm that we’re in a bit of a consolidation phase right now. The Relative Strength Index is just kind of hanging around 45, which is really just saying that momentum is weak but we’re not at a point where we’d consider it being oversold.

If we do manage to break above the $92.65 level then we could see a move up to around $97.33. But on the flip side – if we do end up falling below $88.00 then we could be looking at a trip down to $86.75 next.

Brent Oil Price Forecast: UKOIL Tests $100 Support on 2H Chart

Brent Crude (UKOIL) is trading around $102.89 on the 2-hour timeframe after it took a pretty sharp hit from the $114.47 resistance zone. And while it did dip right down towards $100 it then went straight back up because that’s where the ascending trendline and the 200-Period Moving Average both meet – which is about as good a support zone as you get.

The 50-Period Moving Average at $104.50 is stopping price from going up right now because it’s acting as short-term resistance. The structure of the market looks like lower highs after a rejection at $119 which is saying that we’re in a bit of a consolidation mode but still within an overall uptrend.

If Brent oil manages to stay above the $100 mark then we might start to see a recovery up to $104.50 or even $108.00. But if it does break below $100 then the next potential support would be right down at $96.99.