Yesterday was another positive day for oil price as we saw a jump to $95.00. During today’s Asian trading session, the price of oil retreated to the $94.00 level, where the price found support and started a new bullish trend. We found ourselves again in the zone around the $95.00 level. To continue the bullish option, we need a positive consolidation and a continuation towards the $96.00 level. Above, we could expect the next resistance and the next consolidation zone. We need a negative consolidation and price pullback below the $94.00 level for a bearish option. After that, the bearish pressure would probably increase, which would affect the price, and we would see a further pullback. Potential lower targets are $93.00 and $92.00 levels. Additional support in the zone around $92.00 lay in the MA50 and MA200 moving averages.
Natural gas chart analysis
Late last night, the price of natural gas jumped to the $9.00 level. This was followed by a quick pullback to $8.80, where the price was consolidated during the Asian trading session. Today we have less bearish pressure on the price and have seen a drop to $8.67, where we have some support for now. If the gas price continues to be under pressure, we will probably go down to the $8.60 level. Potential lower targets are the $8.40 level, where we could expect a little more support. Then $8.20 and $8.00 if we see a break below the $8.40 level. For a bullish option, we need a stable price above the $8.80 level. After that, we have a chance to threaten the $9.00 level again. Potential higher targets are $9.20. $9.40 and $9.60 levels.
Market overview
The Chinese petrochemical group Sinopec has announced that it has discovered a huge oil field in the Tarim Basin, which contains an estimated 1.7 billion tons of oil reserves. The discovery of these potential results from research in the Shunbei oil and gas field is considered one of the deepest fields in the world. The Tarim Basin has the potential to meet domestic demand for oil and gas for a decade.
