Natural Gas and Oil Forecast: WTI Snaps Losing Streak as Supply Fears Resurface

Market Overview

WTI crude rebounded to near $65 per barrel, snapping a five-day decline, as renewed geopolitical tensions reignited supply concerns. The sharp move followed rising trade restrictions that may disrupt global energy flows, prompting investors to reassess risk in key markets.

A surprise 3 million barrel draw in U.S. crude inventories added to the bullish momentum. Saudi Arabia’s decision to raise September prices to Asia for a second month further reflects tight supply and resilient demand.

Meanwhile, traders remain cautious amid global diplomatic uncertainties, which continue to pressure natural gas markets and cloud the broader outlook for energy prices into Q3.

Natural Gas Price Forecast

Natural Gas (NG) is facing a technical ceiling near $3.11, where price was rejected at both the descending trendline and 100-EMA ($3.086). The rally from last week’s low at $2.83 has stalled just below this critical confluence zone.

Despite reclaiming the 50-EMA ($3.041), upward momentum is slowing, and recent candles show hesitation near resistance. If bulls fail to break and close above $3.11, price may retrace toward the $3.03 and $2.97 levels, with $2.89 as a deeper support.

To confirm a bullish shift, price needs to hold above $3.11 and challenge the next resistance at $3.18. Until then, the broader trend remains capped by the descending trendline.

WTI Oil Price Forecast

WTI Crude Oil is likely to remain under pressure as long as price stays confined within the descending channel seen on the 2-hour chart. With both the 50-EMA ($66.04) and 100-EMA ($66.59) reinforcing resistance, a breakout appears unlikely in the near term. The midline rejection near $65.10 hints at fading bullish attempts.

If WTI fails to break above $66.40, we may see fresh selling pressure drive price back toward the $64.01 support. A break below that could open the path to $62.13. RSI remains capped below 50, suggesting limited upside momentum.

Outlook remains bearish unless bulls reclaim the upper boundary of the channel with a strong breakout above $66.60 and sustained volume.

Brent Oil Price Forecast

Brent Crude is struggling to break free from its short-term downtrend, as seen on the 2-hour chart. Price was rejected precisely at the upper boundary of the descending channel, just below $68.20. The move came alongside a rejection near the 50-EMA ($68.63) and 100-EMA ($69.14), both acting as dynamic resistance.

The inability to hold above $67.58 suggests fading bullish momentum, with price retreating back into the channel. A clean close below $66.85 would reinforce bearish control and open the door to test the $65.61 level next.

The overall pattern continues to favor sellers unless bulls reclaim $68.20 with conviction.