Market Analysis Summary: Natural Gas and Oil Forecast

Published: January 08, 2026

Key Highlights

• Crude oil prices have rebounded by 0.7% due to tight supply and trade restrictions, with WTI at approximately $56.4 per barrel and Brent at $60.4.
• US employment data is anticipated to influence oil and gas demand, with expectations of modest job growth and steady unemployment rates.
• Natural gas prices have shown resilience, rebounding near $3.60 after finding support in the $3.35-$3.40 range.

Market Overview

The crude oil market experienced a recent decline due to expectations of increased oil supply from Latin America. However, prices have since rebounded, attributed to analysts highlighting ongoing tight supply conditions and trade limitations that hinder additional oil availability. The focus is now shifting towards upcoming US employment data, which is expected to provide insights into demand dynamics for oil and natural gas.

Natural Gas Price Forecast

Natural gas futures are currently trading around $3.60, having bounced back from the demand zone of $3.35-$3.40. The market is observing a gradual increase in the 50-period moving average, indicating potential upward momentum. The 100-period moving average at $3.70 poses a significant resistance level, while the RSI is climbing towards 55, suggesting improving momentum without reaching overbought conditions. A trading strategy is proposed to buy near $3.45, targeting $3.75 with a stop loss below $3.30.

WTI Oil Price Forecast

WTI crude oil is currently around $56.20, facing challenges in breaking through the resistance zone of $57.90-$58.50. The market is constrained by a declining trendline since December, while a rising support line is observed around $55.70-$55.50. Key support levels are identified at $55.50 and $54.40, with resistance at $57.20 and $58.85. The RSI indicates a weak market around the 40 level, suggesting no immediate overselling. A trading strategy is recommended to sell WTI crude if it drops below $55.70, targeting $54.40 with a stop-loss above $56.90.

Brent Oil Price Forecast

Brent crude is trading just below $60, maintaining support at $59.80. Resistance levels are noted at $61.50 and $62.30, with additional support at $59.80 and $59.30. The 50- and 100-day moving averages are acting as barriers to upward movement. The RSI is around 45, indicating a weak price action with no signs of being oversold. A trading strategy suggests selling if the price dips below $59.80, aiming for $58.70 with a stop-loss above $61.00.

Conclusion

The current market conditions for natural gas and oil reflect a complex interplay of supply constraints and demand expectations influenced by economic indicators. Traders are advised to monitor key support and resistance levels closely while considering the implications of upcoming employment data on market dynamics.