Oil and Natural Gas: Prices Go Down 

• The oil price continues the pullback from yesterday after it was stopped at the $90.00 level.


• The price of natural gas yesterday managed to climb up to the $9.20 level.


• Oil rose on Thursday as the market balanced weak demand against supply disruptions due to an upcoming rail strike in the United States, the world’s biggest crude consumer.

Oil chart analysis

The oil price continues the pullback from yesterday after it was stopped at the $90.00 level. During the Asian trading session, the price fell to the $88.00 level, and very quickly, we saw a break below and are now at the $87.00 level. The price could now go down to the $86.00 level. To continue the bearish trend, we need a break below. Potential lower targets are the $85.00 and $84.00 levels. If we do not find support there either, the price could visit the September support zone of $81.00-$82.00 levels. For a bullish option, we need a new positive consolidation and a return above the $88.00 level. Then we need to hold above if oil prices plan to continue on the bullish side. Potential lower targets are $89.00 and $90.00 levels.

Natural gas chart analysis

The price of natural gas yesterday managed to climb up to the $9.20 level, after which we see a bearish consolidation and retreat below the $9.00 level. The price continued to retreat during the Asian trading session, and we are now at the $8.60 level. We are looking for the next support at the $8.40 level. To continue bearish consolidation, we need a break below the previous low, and the potential lower targets are the $8.20 and $8.00 levels. For a bullish option, we need a new positive consolidation and a return above the $8.80 level. Then we must maintain that level to continue the recovery with the next bullish impulse. Potential higher targets are $9.00 and $9.20 levels.

Market Overview

Oil rose on Thursday as the market balanced weak demand against supply disruptions due to an upcoming rail strike in the United States, the world’s biggest crude consumer. The increasing likelihood of a US rail shutdown due to a labor dispute also supports the market. Three unions are negotiating a new contract that could affect rail traffic, which is important for the supply of crude oil and petroleum products. The International Energy Agency (IEA) said on Wednesday it expected a shift from gas to oil for heating purposes. Production would average 700,000 barrels per day from October 2022 to March 2023, double the level of a year ago. This, along with general expectations of weak supply growth, also boosted the market.

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