- Oil prices rose to $78.44 yesterday, marking their highest level in two weeks. After that, we look for consolidation in the $77.50-$78.00 range.
- The price of natural gas fell yesterday to a new low of $1.72.
Oil chart analysis
Oil prices rose to $78.44 yesterday, marking their highest level in two weeks. After that, we look for consolidation in the $77.50-$78.00 range. It remains high and we expect to see continued growth on the upside.
Possible higher targets are $78.50 and $79.00 levels. This afternoon, we will receive news on crude oil inventories released by the Energy Information Administration (EIA), and based on this report, there will be movements in oil prices.
A drop in the price of oil to the $77.00 level would increase the bearish momentum. This would force the price to start falling to a lower support level. Possible lower targets are the $76.50 and $76.00 levels. The EMA200 is in the area around $76.00 levels.
Natural gas chart analysis
The price of natural gas fell yesterday to a new low of $1.72. The halt of exports by the US administration and good weather kept the price of gas at a new multi-year low. During the previous Asian session, the price managed to stay above this level and rose to $1.75. If we break this level, we will have the opportunity to start bullish consolidation in opposition.
Possible higher targets are the $1.80 and $1.85 levels. If the picture surrounding natural gas export does not change, we will see the price decline and form a new bottom. Possible lower targets are the $1.70 and $1.65 levels.
