Oil and Natural gas Price Crashes – May 10

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Oil and Natural gas Price Crashes - May 10

Oil and Natural gas Price Crashes – May 10

• The oil price has lost 9.2% of its value in the last 24 hours.


• The price of natural gas has lost 23.7% of its value since Friday, falling from $ 8.87 to the current $ 6.89.


• UAE Energy Minister Suhail Mohamed Al Mazrouei said that the oil market is balanced on Tuesday.

Oil review chart

The oil price has lost 9.2% of its value in the last 24 hours. Monday started at $ 111.00, and the decline was stopped at the $ 100.34 price. After that, the price rises again to $ 104.20, where it encounters new resistance. Oil is falling again and is now at $ 101,095.  there is no formation of a new higher high on the chart, and based on that, we can expect the bearish trend to continue. We may see a new test of the previous low and a potential break below $ 100.00.

Conversely, if the price finds support here and forms a higher low, then we continue on the bullish side. We need to climb to the $ 105.60-106.45 zone and stabilize at that level with some consolidation before continuing. Our previous target is in the $ 111.00-111.50 zone.

Chart:

Natural gas chart overview

The price of natural gas has lost 23.7% of its value since Friday, falling from $ 8.87 to the current $ 6.89. Today’s consolidation is still close to this morning’s low. If the price fails to consolidate better, then we can expect the pullback to continue towards the $ 6.67 price, a low from April 29. And if he doesn’t hold out, the next support is at $ 6.34, a low from April 25. Considering the preliminary data of the CME group for the natural gas futures markets, the open interest decreased for the third consecutive session on Monday, now by about 3.2 thousand contracts. Natural gas prices recorded large losses at the beginning of the week. However, that move was against the background of the reduction of open interest, which speaks in favour of the fact that further return could lose momentum.

Chart:

Market overview

OPEC and  report

UAE Energy Minister Suhail Mohamed Al Mazrouei said that the oil market is balanced on Tuesday. “There is no need to pump anymore,” he added.

OPEC and its allies agreed last Thursday to extend a small increase in production for June due to persistent concerns about weaker Chinese demand. The alliance agreed to increase production by 432,000 barrels per day for the next month.

’s crude oil production is rising in May, Deputy Prime Minister Alexander Novak told the TASS news agency on Monday.

’s crude oil production fell by half a million barrels a day in March to a million barrels a day in April. Many analysts expressed concern that those barrels may never return to the market. April’s OPEC + production quota was set at 10.436 million barrels per day.

Novak’s picture is not so gloomy, considering that n crude oil production is now stabilizing despite sanctions.

“Looking at the numbers for the beginning of May, they are better than in April. The situation is currently stable, and production has increased compared to the previous month. “We are counting on a partial recovery of data in May, and it will be better,” Novak told TASS.

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