Oil and Natural Gas: Oil’s Price Still Falling Since Monday

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Oil and Natural Gas: Oil's Price Still Falling Since Monday

 

Oil and Natural Gas: Oil’s Price Still Falling Since Monday

• Today’s oil price still falling since Monday after it reached the $93.75 level.


• During the Asian trading session, the gas price hovered around the $5.80 level.

Oil chart analysis

Today’s oil price still falling since Monday after it reached the $93.75 level. During the Asian trading session, the price was maintained at around $89.00; in the European session, it continued to retreat to the $88.00 level. We need a continuation of this negative consolidation and a drop to the $87.00 level for a bearish option.

We have additional support at that level in the lower trend line. A break below would mean we will see further declines in oil prices. Potential lower targets are the $86.00 and $85.00 levels. We need a positive consolidation and a return above the $89.00 level for a bullish option first. Then we need to hold on there and try with a new impulse to continue the oil price recovery. Potential higher targets are the $90.00 and $92.00 levels.

Natural gas chart analysis

During the Asian trading session, the gas price hovered around the $5.80 level. At the beginning of the week, we climbed to the $6.75 level, then the gas price began to retreat, and very quickly, we found ourselves below the $6.00 level. For a bullish option, we need a new positive consolidation and a return to the $6.00 level.

Then we need to hold on there, and with a new bullish impulse, we could see a new recovery in gas prices. Potential higher targets are the $6.20 and $6.40 levels. For a bearish option, we need a continuation of this inactive consolidation and a further decline below the $5.80 level. We have additional support at the $5.60 level in the lower trend line. A break below could further lower gas prices. Potential lower targets are the $5.40 and $5.20 levels.

Market overview

The data showed that US crude oil inventories rose more than expected, and there is concern that the number of cases of infection in China continues to rise. Crude oil stocks in the US increased by about 5.6 million barrels in the previous week. Another bearish sign was API data, which showed gasoline inventories rose by about 2.6 million barrels, compared to analysts’ forecasts for a drawdown.

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