Natural Gas and Oil Forecast: Can $55 WTI and $3.35 Gas Hold Critical Support?
Published: January 07, 2026
Market Overview
Oil and natural gas prices have recently declined as markets prepare for an influx of 30 to 50 million barrels of new supply, raising concerns about oversupply in the energy sector. The price of crude oil has dropped by over a dollar per barrel, with Venezuelan heavy crude trading at a significant $22 discount to Brent, indicating weak physical demand and exerting downward pressure on global oil prices.
Analysts express concern that the anticipated increase in oil supply could disrupt the current market balance, with some major banks forecasting a surplus of 3 million barrels per day by early next year. Despite a reported decrease in US crude inventories by 2.77 million barrels, there is still a buildup in fuel stocks, contributing to a cautious energy outlook.
Natural Gas Price Forecast
Natural gas futures are currently trading around $3.48, showing signs of stabilization above a support zone of $3.35-$3.38. The immediate resistance level to watch is $3.70, with a potential retest of $3.18 if prices fall below $3.35. The momentum remains neutral, suggesting a modest rebound is possible. A trade idea is to buy near $3.40, targeting $3.75, with a stop loss set below $3.30.
WTI Oil Price Forecast
WTI crude oil is trading at $56.38, having fallen from a resistance level of $58.65. Recent trading patterns indicate that selling pressure is easing, with buyers beginning to enter the market. Key support levels are identified at $55.76-$55.50, while resistance is noted at $57.38 and $58.65. The RSI is neutral, indicating potential for a bounce. A suggested trade is to buy near $55.80, targeting $57.40, with a stop loss just below $55.20.
Brent Oil Price Forecast
Brent crude oil is trading close to $60.13, having recently pulled back towards a rising trend line that serves as support. Long lower wicks in recent candles suggest emerging demand after attempts to break below a descending trendline in the $62.20-$62.30 range. Key support is at $59.38, with resistance at $61.06 and $62.26. The momentum remains neutral, indicating a consolidation phase. A potential trade idea is to buy near $59.80, targeting $61.80, with a stop loss below $58.90.
Conclusion
The energy market is currently facing challenges due to potential oversupply, particularly in oil, while natural gas shows signs of stability. Traders are advised to monitor key support and resistance levels closely as they navigate these market conditions.