Oil markets are starting 2025 on a cautious note as investors weigh the impact of geopolitical tensions and evolving economic dynamics. China’s growth-focused policies have provided some support for crude prices, but traders remain wary due to rising global supplies and muted Chinese demand.
According to a Reuters poll, oil is forecasted to trade near $70 a barrel this year, indicating that price gains may be limited. Meanwhile, Russia’s pipeline gas export halt to Europe highlights ongoing supply challenges, underscoring the sensitivity of energy markets to global geopolitical risks.
In the natural gas market, prices are trading at $3.46, down 1.56% for the day. Analysts expect support levels to be tested around $3.35 and $3.16, with immediate resistance at $3.89 and $4.20. The technical landscape suggests a bearish bias, with the 50 EMA acting as dynamic resistance.
In the WTI oil market, prices are inching up 0.02% at $71.80, hovering below the pivot point at $73.13. Analysts note that immediate resistance is seen at $72.66 and $73.30, while key support lies at $71.37 and $70.75.
In the Brent oil market, UK Oil (UKOIL) is trading at $74.72, slipping 0.11% in the latest session. Analysts expect immediate resistance to be at $75.32 and $76.03, while key support levels are marked at $73.74 and $72.96.
Derivatives analyst Arslan provides insights on the markets, citing his expertise in trading psychology and sentiment.
Source: https://www.fxempire.com/forecasts/article/natural-gas-and-oil-forecast-will-u-s-manufacturing-data-ignite-a-price-surge-1487474