Oil and Natural Gas: Double Higher High for Today

• The oil price formed a new higher high at the $88.68 level during the Asian session this morning.
• The price of natural gas continues its three-day recovery, forming a new higher high this morning at the $7.00 level.
• The European Union adopted the eighth package of sanctions against Russia, which includes limiting oil prices.

Oil chart analysis

The oil price formed a new higher high at the $88.68 level during the Asian session this morning. Since then, we have been in retreat, and the oil price is now at the $87.31 level. This pullback could continue to the $86.00 level, where a larger support zone awaits us. If we fail to hold here, we will see a new price pullback to lower levels. Potential lower targets are the $85.00 and $84.00 levels. For a bullish option, we need a new positive consolidation and a return to the $88.50 level. Then we must stay in that place and continue the price recovery with a new bullish impulse. Potential higher targets are the $89.00 and $90.00 levels.

Natural gas chart analysis

The price of natural gas continues its three-day recovery, forming a new higher high this morning at the $7.00 level. We now have a minor pullback to the $6.90 level. We need a continuation of the negative consolidation and a price drop below the $6.80 level for a bearish option. Potential lower targets are the $6.60 and $6.40 levels. For a bullish option, we need a new positive consolidation and price return to the $7.00 resistance level. A break above would be of great use to us. Then we must stay above and try with a new impulse to continue the bullish recovery. Potential higher targets are the $7.20 and $7.40 levels.

Market Overview

The European Union adopted the eighth package of sanctions against Russia, which includes limiting oil prices. In the new package of sanctions, the EU establishes the basis for determining the upper limit of the price of Russian oil for its transportation by sea. EU sanctions foresee a ban on oil transportation from Russia by the sea at a price above the established limit from December and oil derivatives from February. In a new package of sanctions, the EU prohibits the import of Russian goods worth seven billion euros. Yesterday it was announced that the permanent representatives of the member states of the European Union agreed on a new package of sanctions against Russia.