Natural Gas Spikes on Arctic Freeze as Oil Tightens from Venezuela Supply Issues

The oil markets have been monitoring the Venezuela’s exports. The 7.8 million barrels shipped have been under a new $2 billion supply agreement with the United States. Nevertheless, these volumes are moving slowly and are yet to alter the broader perspective of world supply.

These shipments are limited and prices have not dropped dramatically. The traders view Venezuela as a possible contributor to the U.S. and the global refineries in terms of heavy crude. However, the delivery speed remains slow, which leaves the market tight. The oil prices slightly increased on concern of supply by Venezuela and other producers. The exports of Venezuela in the short run will not make oil prices drop to large margins.

Arctic Freeze Triggers Natural Gas Price Spike and Global Energy Volatility

U.S. natural gas prices shot up as the Arctic cold covered the nation. Extremely low temperatures and wind chill warnings pushed heating demand up to an extremely high level. The spike on Tuesday and Wednesday was the largest two-day rally in decades as the prices increased as high as $4.70 from the low of $3.40 in just the 48 hours.

The weather forecasts show even lower temperatures in the Midwest and East. The high temperatures in the day will remain between 10s and 40s and at night, they may even reach below zero. Texas is not prepared for snow and a failure in the supply of gas could further strangle the supply. Energy markets are on the alert with the forecast of the weekend even lower.

Asia and Europe are also dealing with harsh winter conditions. The demand of heating in China surged which has reversed the recent slide in natural gas prices. This demand is expected to remain until February as cold air strains the global energy supply. Since the northern hemisphere faces record low temperatures, weather has now become the primary cause of the swings in gas prices and constrained supply across continents.

Oil Technical Analysis

WTI crude oil rebounds from the support level of the 50-day SMA towards the $62 area. A break above the $62 level is required to take WTI crude oil towards the $66 level. However, the short-term price action shows strong consolidation, indicating the price is preparing for the next move. The RSI is rebounding from the mid-level, which indicates further upside during the next few sessions in the short term.

The 4-hour chart for WTI crude oil shows a constructive rebound from the $59 area towards the $62 area. The rebound from the strong support of the red trend line indicates that WTI crude oil may continue to trend higher in the short term. A break above $62 will take WTI crude oil towards the $66 area. However, a break below $59 will indicate further downside towards the $55 area.

Natural Gas Technical Analysis

The daily chart for natural gas shows constructive bullish price action. This constructive price action is seen in the formation of a cup and handle pattern, whereby the price retested the $2.50 level in August 2025. A strong rebound from August 2025 has taken market towards higher levels, while the correction in January 2026 formed strong support at the $3 level.

This strong support is seen at the black trend line, and a strong rebound from the support area back towards the $5 region indicates sustained bullish momentum in natural gas prices. This constructive price action indicates a strong rally during next few days. The target for natural gas remains the $7 region.

The strong rebound in natural gas prices has taken the price above 200-day SMA, whereby the 50-day SMA remains above the 200-day SMA. This configuration indicates that natural gas prices may continue to trend higher during the next few days.

The 4-hour chart for natural gas also shows strong bullish price action, as the price has moved above the $4.70 level. The RSI has reached the 85 level, which indicates an extremely overbought level in the short term. However, the continued momentum on the bullish daily chart indicates the price is likely to trend higher further before any meaningful pullback.

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