Oil and Natural Gas: Big Step

• During the Asian trading session, the price of oil retreated to support at the $86.50 level.
• The price of natural gas yesterday managed to make a big step from the $7.90 to $8.40 level.
• At a Friday meeting of EU energy ministers, it was suggested that each EU country implement strategies to reduce overall electricity consumption by at least 10 %, the Wall Street Journal writes.

Oil chart 

During the Asian trading session, the price of oil retreated to support at the $86.50 level and the MA200 moving average. This was followed by a bullish impulse that took us above $88.00. In the euro session, oil prices rose and exceeded yesterday’s maximum at $89.10. Our next stop is at the $90.00 level. A potential higher target is the $90.40 level, the September high. We need a new negative consolidation and a drop to the $88.00 level for a bearish option. A price break below would increase the bearish pressure, and our next target would be first $86.50, this morning’s low, and then $86.00, the support level. Potential lower targets are $85.00 and $84.00 levels.

Natural gas chart analysis

The price of natural gas yesterday managed to make a big step from the $7.90 to $8.40 level. During the Asian trading session until now, the gas price has been moving sideways around the $8.40 level. Above us is the MA200 moving average at $8.50, and we need a break above to continue to the $8.60 level. Then it would be preferable to stay up there because a new bullish impulse could follow. Potential higher targets are $8.80 and $9.00 levels. For the bearish option, we need a negative consolidation and a drop in the gas price to the $8.20 level. We would look for the next potential support at the $8.00 level, and if we fail to hold even there, we will go down towards the September support zone at the $7.80 level.

Market Overview

At a Friday meeting of EU energy ministers, it was suggested that each EU country implement strategies to reduce overall electricity consumption by at least 10 %, the Wall Street Journal writes.

Earlier this summer, the EU asked its members to reduce gas consumption by 15 % from this fall to winter. An emergency meeting of EU energy ministers was held on Friday to discuss consumer energy bills and capping the price of Russian natural gas. The meeting ended without a concrete plan.