Geopolitical risks keep Oil, Gas volatility elevated – Rabobank

💡 DMK Insight

Energy traders should brace for a potential price drop as 2026 approaches, driven by increased non-OPEC production and new LNG capacity. With fundamentals indicating a well-supplied market, the implications for crude oil and natural gas prices could be significant. If non-OPEC production ramps up as expected, we might see a bearish trend that could challenge current price levels. Traders should keep an eye on key resistance levels in crude oil, particularly around $80, as a break below could trigger further selling pressure. Additionally, the influx of LNG could reshape the natural gas market, impacting related assets like energy stocks and ETFs. But here’s the flip side: if geopolitical tensions arise or demand unexpectedly surges, we could see a counter-trend rally. So, while the fundamentals suggest a bearish outlook, it’s crucial to monitor global events that could disrupt supply or alter demand forecasts. Watch for any shifts in OPEC’s strategy as well, as they could influence market dynamics significantly.