Market Analysis Summary - Oil and Natural Gas Forecasts
Published: June 5, 2026
Author: Vladimir Zernov
Overview
The article discusses the recent trends in the oil and natural gas markets, highlighting the impact of strong U.S. economic data on commodity prices. Traders are preparing for a potential rate hike cycle by the Federal Reserve, which has led to a sell-off in the commodity markets.
Natural Gas Market
Natural gas prices have declined, failing to maintain levels above $3.40 and pulling back towards $3.20. If prices drop below this level, they may test support in the $3.00 to $3.05 range. The Relative Strength Index (RSI) indicates that there is potential for upward momentum if favorable catalysts emerge.
WTI Oil Market
West Texas Intermediate (WTI) oil is also experiencing a downturn, currently testing support levels between $91.00 and $91.50. The recent U.S. Non-Farm Payrolls report showed the economy added 172,000 jobs in May, significantly exceeding the forecast of 85,000 jobs. This positive economic data has strengthened the U.S. dollar, making oil more expensive for international buyers.
Traders are closely monitoring U.S.-Iran negotiations, which have shown little progress. President Trump indicated that talks are in the "final" stages, but details remain scarce. The ongoing conflict between Israel and Hezbollah adds further uncertainty to the market.
If WTI oil successfully breaks below the $91.00 - $91.50 support range, it may decline towards the next support level of $85.00 - $85.50. Conversely, for a bullish outlook, WTI oil needs to settle above the resistance at $97.00 - $97.50.
Brent Oil Market
Brent oil is under similar pressure, influenced by the strong dollar and speculation regarding a U.S.-Iran deal. The nearest support level for Brent is also in the $91.00 - $91.50 range, with a potential decline towards April lows at $86.00 - $86.50 if this support fails.
Conclusion
The article emphasizes the cautious sentiment in the oil and natural gas markets as traders react to economic indicators and geopolitical developments. The potential for rate hikes by the Federal Reserve and ongoing tensions in the Middle East are key factors influencing market dynamics.