Oil and gas unstable; Chart overview
- During the Asian session, the price of crude oil was at the level of yesterday.
- The price of natural gas is falling today after a turbulent day yesterday.
- U.S. President Joe Biden could meet with Mohammed bin Salman or the Saudi Arab Union next month as early as next month.
Oil analysis chart
During the Asian session, the price of crude oil was at the level of yesterday. It has been announced that China is increasingly buying oil from Saudi Arabia. Oil traders are worried that the weakening of global economic growth and the tightening of monetary policies of large central banks could curb the recovery in demand for petroleum products. That is why the oil price is in a kind of controlled upward trend. The US strategic reserves have been at their lowest level since 1987.
An official government report showed yesterday that crude oil inventories in the United States fell by 3.39 million barrels. At around 9:20 a.m., crude oil traded at $ 110.42 a barrel, up 0.45% from trading tonight. Our potential bullish targets are $ 111.00 and $ 112.50. For the bearish trend, we need pullback prices below $ 108.50. After that, we can expect a further retreat towards the following levels of support $ 108.00, $ 106.00, and $ 104.00.
Natural gas chart analysis
The price of natural gas is falling today after a turbulent day yesterday. The price dropped from yesterday’s $ 8.45 to the current $ 7.81. For the bearish option, we need a continuation of this negative consolidation. If we do not find support here, then we can expect the price to continue to fall to lower levels of support. Potential bearish targets are $ 7.60 and $ 7.44. For the bullish option, we need a new positive consolidation and a return above $ 8.00. After that, the price could continue with the recovery towards yesterday’s high at $ 8.45. The potential targets above are $ 8.68 and $ 8.87.
Market overview
President Biden and a potential meeting with the Saudi prince
U.S. President Joe Biden could meet with Mohammed bin Salman or the Saudi Arab Union next month as early as next month; anonymous sources told CNN on Thursday.
The White House has tried to encourage both Saudi Arabia and the UAE to raise crude oil production. Which would lead to an attempt to lower crude oil prices. The Wall Street Journal in march reported that both the Crown Prince of Saudi Arabia and Sheikh Mohammed bin Zayed of the UAE had rejected requests for direct communication with the US president regarding crude oil.
The Crown Prince of Saudi Arabia said he hoped Washington would do more to strengthen bilateral relations.
In a statement on Friday, Finnish state gas wholesaler Gasum announced that the supply of Russian gas to Finland will be stopped on May 21, Reuters reported.
Gazprom is stopping gas supplies to Finland
“Gazprom Export informed Gasum on Friday afternoon, May 20, that deliveries of natural gas to Finland under Gasum’s supply contract will be suspended,” the statement said.
The company announced that it would supply natural gas to its customers from other sources through the BalticConnector gas pipeline during the upcoming summer season.
