Are We Expecting Another Drop in Oil and Natural Gas Prices?
- During the Asian trading session, the oil price continued its bullish trend and rose to $84.50, the 78.6% Fibonacci level.
- Yesterday, the price of natural gas fell below the support at $6.40 and stopped at the $6.20 level.
- As early as Monday, the European Union could reach an agreement to support a cap on the price of Russian oil and new sanctions against Russia, the Polish representative in the EU said today.
Oil chart analysis
During the Asian trading session, the oil price continued its bullish trend and rose to $84.50, the 78.6% Fibonacci level. Yesterday the price of oil made a break above the September resistance line, and now we need a continuation of the growth to the $86.00 level in order to test the previous high. For a bearish option, we need a negative consolidation and a return to support at $82.70, the 61.8% Fibonacci level. With the inability of the price to hold even there, we will see a new break below and the continuation of the weakening of oil price. Potential lower targets are $82.00 and $81.00, and the previous low is at the $80.00 level.
Natural gas chart analysis
Yesterday, the price of natural gas fell below the support at $6.40 and stopped at the $6.20 level. During the Asian trading session, the price of gas moved in that range without major oscillations. Bearish pressure has increased as we have seen a break below the support zone, and we can now expect a further decline to the $6.00 support level. This would create a new four-month minimum. We first need a positive consolidation and a return above the $6.40 level for the bullish option. This would bring us back to the previous support zone. After that, we need a new bullish impulse that continues the gas price recovery. Potential higher targets are the $6.80 and $7.00 levels.
Market Overview
As early as Monday, the European Union could reach an agreement to support a cap on the price of Russian oil and new sanctions against Russia, the Polish representative in the EU said today. The EU is seeking to reach an agreement on a new package of sanctions before a summit of EU leaders on October 7 in Prague. The package of sanctions requires the unanimous approval of all 27 EU member states. Hungary said it would block new energy sanctions against Russia because they are against the interests of the Hungarian people.
