Oil and natural gas markets showed mixed but relatively stable trading

Crude oil prices staged a modest recovery after recent sharp declines, with WTI crude futures trading around $62.40 to $62.60 per barrel in early sessions, reflecting gains of roughly 0.5% to 0.7% from the prior close. Brent crude hovered near $66.50 to $66.70 per barrel, up about 0.4% to 0.6% intraday. This stabilization followed heavy selling in the previous sessions, driven by easing geopolitical concerns in the Middle East. Reports of potential U.S.-Iran nuclear discussions and reduced U.S. military positioning near Iran have helped unwind some of the earlier risk premium that had supported prices. Additionally, markets are monitoring possible U.S.-India trade developments, where tariff adjustments could further influence Indian purchases of Russian crude, potentially adding more unsold volumes to global supply. OPEC+ has maintained its stance of pausing production increases through March, keeping output steady amid seasonally softer demand and ample inventories, which continues to cap any significant upside.

In the natural gas market, Henry Hub futures (March 2026 contract) traded in a narrow range around $3.25 to $3.30 per MMBtu, posting small gains of approximately 0.5% to 1.4% in some sessions after one of the most dramatic single-day drops in decades the day prior. Prices had plunged sharply due to a major shift in weather outlooks toward much milder temperatures across key U.S. regions through mid-February, slashing anticipated heating demand. U.S. production has also rebounded strongly, reaching levels near 111.6 billion cubic feet per day as output recovered from earlier freeze-related disruptions. Despite recent heavy storage withdrawals during the prior cold snap, inventories remain above seasonal norms, adding further downward pressure. Strong LNG export demand provides some underlying support, but the warmer forecast continues to dominate near-term sentiment, keeping volatility elevated.

Overall, oil benchmarks are attempting to find a floor in the low-to-mid $60s range amid balanced fundamentals and fading geopolitical fears, while natural gas remains highly sensitive to weather shifts and supply recovery, trading well below recent peaks as markets digest the post-storm unwind. Traders will keep a close eye on updated weather models, any diplomatic progress involving Iran, and broader trade signals for the next directional cues.