Market Analysis Summary - February 6, 2026
Overview of Oil and Natural Gas Markets
Oil prices have seen a rebound, with WTI crude trading above $64 per barrel, driven by renewed geopolitical tensions that have introduced a risk premium in energy markets. Despite this increase, there are signs of global oversupply, particularly as Saudi Arabia has cut its official selling prices to Asia to the lowest levels since 2020, indicating ample supply but steady demand expectations.
WTI Crude Oil Analysis
WTI crude is currently trading around $64.10, showing signs of consolidation after a rally from a low of $56. The market remains above key moving averages, with the 50-EMA at $62.70 and the 200-EMA at $59.80, suggesting a positive medium-term outlook. However, resistance has been noted between $65.10 and $66.45, creating a short-term range. A Fibonacci retracement indicates support at $62.70, with a balanced RSI around 55.
Trade Idea: Consider buying near $62.70, targeting $65.80, with a stop set below $61.20.
Brent Crude Oil Analysis
Brent crude is trading at approximately $68.40, having bounced back from the $67.00 area. The price remains above a rising trendline, indicating a positive short-term outlook. The market is also above the 50-EMA at $67.10, with the 200-EMA at $64.30 reinforcing the broader uptrend. The price is currently in a tightening range between $67.00 support and $69.05 resistance.
Trade Idea: Look to buy near $67.20, targeting $70.50, with a stop below $65.40.
Natural Gas Market Analysis
Natural gas futures are trading around $3.49, showing signs of consolidation after a strong rally. The price remains above a demand area near $3.15, which previously acted as resistance. The market is supported by a rising trendline and is above the 50-EMA at $3.20, indicating a positive short-term outlook. The RSI is balanced at around 55, suggesting potential for further upside.
Trade Idea: Consider buying on dips near $3.20, aiming for $4.00, with a stop below $3.00.
Conclusion
The current market dynamics for oil and natural gas reflect a complex interplay of geopolitical risks and supply-demand fundamentals. Traders are advised to remain cautious and consider the outlined trade ideas based on technical analysis and market conditions.