Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Tests New Highs As Traders Bet On Rising Demand

Natural gas remains bearish, with current demand forecasts failing to provide sufficient support, potentially leading to a test of $3.05-$3.10 if the $3.35-$3.40 support level is breached. In contrast, crude oil markets show bullish momentum: WTI oil tested new highs on demand bets despite tariffs, targeting $71.50-$72.00 if it holds above $68.00, while Brent oil is recovering post-June pullback, attempting to settle above $70.00 with resistance at $71.00-$71.50 and potential to reach $75.00-$75.50.

Analysis

A clear divergence is evident in the energy commodity markets, with natural gas exhibiting bearish pressure while crude oil shows bullish momentum. For natural gas, traders remain bearish as forecasts for high demand are deemed insufficient to support the market. The critical technical level to watch is the support range of $3.35 – $3.40; a failure to hold this level would signal further downside, opening a path towards the next support at $3.05 – $3.10. In contrast, crude oil markets are strengthening. WTI has tested new highs, with traders focusing on rising demand expectations over the impact of new tariffs. A sustained hold above the $68.00 level is pivotal for a potential rally towards the resistance zone of $71.50 – $72.00. Similarly, Brent crude is recovering from its late June pullback, attempting to establish a position above $70.00. Its near-term resistance is identified at $71.00 – $71.50, and a decisive move above this could propel it towards the $75.00 – $75.50 range.

Key Decisions for Investors

• Investors could consider a pair trade strategy, such as shorting natural gas futures while going long on WTI or Brent crude futures, to capitalize on the divergent market sentiment and technical setups.
• For natural gas positions, the $3.35 support level is a key decision point; a confirmed breach could trigger new short positions or an exit from existing long positions.
• In the crude oil market, holding long positions appears favorable as long as WTI remains above $68.00 and Brent above $70.00, as these levels serve as the foundation for the current bullish thesis.
• Given that the analysis is based on technical levels and trader sentiment, positions should be monitored closely for any breakdown in momentum, particularly as tariffs remain a potential source of volatility for oil prices.