Natural Gas and Oil Forecast: Will Russia’s Production Cut Push Prices Above Resistance?

Market Overview

Oil prices rebounded nearly 2% after three weeks of losses, driven by tightening supply conditions. Russian oil production fell to 8.962 million barrels per day (bpd) in January, missing its OPEC+ quota by 16,000 bpd and fueling supply concerns.

Additionally, sanctions on Russian and Iranian oil shipments have disrupted trade flows to major importers like China and India. Meanwhile, fresh 25% U.S. tariffs on steel and aluminum, along with 10% duties on Chinese imports, have raised fears of slower economic growth and weaker energy demand.