Natural Gas, WTI Oil, Brent Oil Forecasts – Crude Slips on Inventory Builds, NatGas Eyes June Demand Surge

Brent Crude Technicals Weak as Supply Builds Offset Geopolitical Risk

Brent crude futures are trending lower, currently at $64.86 after shedding 0.18% on the day. Prices remain below the 50-day and 200-day SMAs, at $66.00 and $70.52 respectively, indicating persistent bearish momentum. A recent attempt to reclaim the 50-day SMA failed, suggesting overhead resistance is firm.

Fundamentally, bearish EIA data showing surprise builds in crude (+1.3M bbl), gasoline (+800K bbl), and distillates (+600K bbl) weighed on prices, despite earlier gains from rising geopolitical tensions involving Israel and Iran. While supply risks from the Middle East remain, current technicals and inventory trends point to continued downside pressure for Brent.

Light Crude Oil Struggles Below Resistance Amid Bearish Inventory Print

WTI crude futures settled at $61.60, down 0.69% on the session, and remain capped by the 50-day SMA ($63.00) and well below the 200-day SMA ($66.94). Technically, the rejection near the 50-day average signals continued bearish sentiment.

The fundamental backdrop reinforces this view, with EIA data showing broad builds in U.S. crude and fuel inventories. While geopolitical tensions with Iran have created upside tail risks, traders are focusing on physical market softness and OPEC+ discipline lapses, such as Kazakhstan’s production increase. Unless Middle East disruptions escalate, WTI is likely to remain under bearish pressure.

Natural Gas Prices Slip Despite Bullish Summer Demand Outlook

Natural gas futures fell 2.36% to $3.346, unable to sustain a bounce from recent lows. Prices remain stuck below the 50-day SMA ($3.70) and hover just above the 200-day SMA ($3.168). While the technical picture suggests range-bound consolidation, the fundamental outlook is turning more bullish.

The FERC and NERC summer reliability reports signal grid strain risk amid hot weather forecasts and rising demand. However, in the near term, mild temperatures across the Midwest and East are keeping demand soft. Barring surprises, natural gas could firm by early June if forecasted heat materializes and demand strengthens accordingly.

More Information in our Economic Calendar.