Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Pulls Back As Traders React To Tariff News

Natural gas prices declined due to forecasts of low demand, facing support at $3.05-$3.10 after breaching $3.20. WTI oil prices retreated amid anticipation of a potential OPEC+ production increase of 411,000 bpd in July, while delayed EU tariffs offered some support; a breakout above $62.50-$63.00 is needed for further upside. Brent oil also pulled back below $65.00 as traders took profits, though RSI indicates room for near-term momentum.

Analysis

Natural gas prices have retreated following an inability to sustain levels above the critical $3.35-$3.40 resistance, pressured by bearish weather forecasts indicating subdued near-term demand; a breach of the $3.20 support level would signal potential for further declines towards the $3.05-$3.10 zone. Concurrently, WTI oil experienced a pullback as market participants anticipate the upcoming OPEC+ meeting, where a potential output increase of 411,000 barrels per day in July is under consideration, which could weigh on prices. However, some support for oil markets emerged from President Trump's decision to delay 50% tariffs on the EU. For WTI, a sustained move above the $62.50-$63.00 resistance is necessary to unlock further upside momentum. Brent oil also saw a retracement below the $65.00 mark, attributed to profit-taking following its recent rebound, although its Relative Strength Index (RSI) remains in moderate territory, indicating available capacity for renewed momentum. The overall market sentiment for these commodities, reflected as moderately negative with a bearish tone, underscores these near-term headwinds and technical pressures.

Key Decisions for Investors

• Investors should closely monitor natural gas prices at the $3.20 support, as a break below this level, driven by low demand forecasts, could lead to further downside towards the $3.05-$3.10 support area.
• For WTI oil, it is prudent to await clarity from the OPEC+ meeting regarding the potential 411,000 bpd output increase, as this could significantly impact prices, while a decisive move above the $62.50-$63.00 resistance would be a key bullish indicator.
• Despite Brent oil's pullback below $65.00 due to profit-taking, its moderate RSI suggests potential for a recovery, but this should be assessed in conjunction with WTI's trajectory, the outcome of the OPEC+ meeting, and the broader energy market sentiment.