Natural Gas and Oil Market Forecast: WTI Breakdown Below $92 While Brent Tests $94
Published: June 02, 2026
Key Points
- The US-Iran ceasefire has held for over eight weeks, allowing for a gradual resumption of tanker traffic through the Strait of Hormuz.
- WTI crude oil prices fell to $91.15 after breaking below key support levels.
- Brent crude dipped to $94.06, testing lower support levels with a neutral-to-bearish momentum.
- Natural gas futures remained stable at $3.169, maintaining a bullish structure.
Market Overview
The oil and natural gas markets have shown stability since the ceasefire was established over nine weeks ago. The resumption of tanker traffic has led to a quiet trading environment, with oil prices reflecting optimism for supply restoration in the Strait of Hormuz. The geopolitical risk premium has diminished significantly, contributing to a balanced market for WTI and Brent crude oil.
U.S. crude production remains robust, complemented by disciplined supply management from OPEC+ and increasing contributions from non-OPEC producers like Brazil, Guyana, and Canada. However, Iranian oil supply has not yet returned to full capacity, and global demand growth is expected to be moderate due to high borrowing costs and subdued consumer spending in developed markets.
Natural Gas Market Analysis
Natural gas prices in the U.S. and Europe are supported by strong inventory builds, particularly due to warmer spring weather. The geopolitical easing has alleviated some pressure on oil shipping routes, including liquefied natural gas (LNG) from the Middle East. Demand from Asia and Europe is anticipated to remain firm in the near term.
Upcoming inventory data reports and potential OPEC+ actions are being closely monitored, as the current truce has reduced immediate supply disruption risks, although the situation remains delicate.
Technical Analysis
Natural Gas Futures
Natural gas prices have retraced to $3.169, following a recent surge. The price structure remains above $3.10, with higher lows being established. The next resistance levels are identified at $3.195 and $3.256. A trade idea suggests buying natural gas futures at $3.169, targeting $3.256 with a stop at $3.10.
WTI Crude Oil
WTI crude oil prices have slid to $91.15, breaking below the ascending channel floor. The bearish momentum is evident, with potential targets for further declines set at $89.14 and $88.44. A trade idea recommends shorting WTI crude oil at $91.15, with a target of $89.14 and a stop at $92.50.
Brent Crude Oil
Brent crude oil has dipped to $94.06, testing the descending channel floor. The price action indicates lower highs, with significant supply levels identified at $97.62. A trade idea suggests shorting Brent crude oil at $94.06, targeting $92.54 with a stop at $95.50.
Conclusion
The oil and natural gas markets are currently navigating a complex landscape influenced by geopolitical factors and supply-demand dynamics. Traders are advised to remain vigilant as market conditions evolve, particularly with upcoming inventory reports and OPEC+ decisions on the horizon.