Oil and Natural gas: Fall and Jump

• During the Asian trading session, the price of crude oil fell after a strong rise from yesterday.
• The price of natural gas starts a new bullish impulse after finding support at $ 8.20.
• A White House economic adviser said Thursday that the Biden administration is now considering a proposal by the US Congress to introduce an extraordinary tax on oil and gas as prices at gas stations continue to rise.

Oil analysis chart

During the Asian trading session, the price of crude oil fell after a strong rise from yesterday. Yesterday, the EU ambassadors managed to approve a new set of sanctions against Russia, including a ban on importing Russian oil until the end of this year. Hungary succeeded in requesting that the head of the Russian Orthodox Church, Patriarch Kirill, be removed from the proposed list of sanctioned persons.

The request to re-export refined Russian oil was not granted. The OPEC + initiative has decided to “return” only 648,000 barrels to the market since July. Saudi Arabia and the UAE, despite the strength of the word that they are ready to increase oil production due to the reduced inflow from Russia, the market was quite disappointed with this decision on the quantity, which is pushing the price of oil. Also, the official government report on the state of crude oil stocks showed yesterday that crude oil stocks in the United States fell by as much as 5.07 million barrels. Crude oil traded at $ 116.55 a barrel, down 0.30% from last night. The price dropped to 115.25 dollars during the European session and found new support there. If we see a recovery in prices above $ 118.00, oil could start a new bullish rally above $ 120.00.

Natural gas chart analysis

The price of natural gas starts a new bullish impulse after finding support at $ 8.20. The price formed a new higher low, and after that, we see a bullish jump to the current $ 8.58. Now our target zone is $ 9.00, but first, we have to go above the 8.80 resistance zone. Potential higher targets are $ 9.00, $ 9.20 and $ 9.40 level. For the bearish option, we need a new negative consolidation and a price withdrawal below $ 8.50. If the negative pressure continues, the price could drop to a new test of the support zone at $ 8.00.

Market overview

A White House economic adviser said Thursday that the Biden administration is now considering a proposal by the US Congress to introduce an extraordinary tax on oil and gas as prices at gas stations continue to rise, Reuters reports. “We are very open to any proposal that would provide relief to consumers at the gas station,” Bharat Ramamurti, deputy director of the National Economic Council, told a Roosevelt Institute panel.

Ramamurti’s comments came just a day after the deputy director of the National Economic Council told reporters that Biden’s plan to fight inflation includes cutting the budget in part by raising taxes for the country’s richest American and large companies.

“What the president has done and made clear is that we are committed to doing everything we can to stop and suppress that Russian aggression, but it will hurt American consumers in the short term, and gas prices are an unfortunate example.” “Ramamurti said.