Oil and Natural Gas: Minor positive consolidation
- During the Asian trading session, the price of oil fell to the $104.50 level.
- Yesterday, the price of natural gas slipped from $6.55 to the $5.30 level.
- At a press conference on Thursday, Biden said Americans would suffer high gas prices for as long as Russia is not defeated.
Oil chart analysis
During the Asian trading session, the price of oil fell to the $104.50 level. As the European session began, the price of oil began to rise, and we are now at $107.50. Additional resistance at this level is the MA200 moving average. We need a positive consolidation and a break above the $108.00 level for a bullish option. After that, the price could climb up to the $110.00 level. If we manage to stay above $110.00, then the oil price could try to continue its growth towards $114.00, last week’s high. We need negative consolidation and price pullbacks to the $106.00 level for a bearish option. After that, the price could retest the zone at the $105.0 level. A break below would take us lower to support at $104.00 or the $102.00 June low.
Natural gas chart analysis
Yesterday, the price of natural gas slipped from $6.55 to the $5.30 level. During the Asian trading session, the price recovered to $5.65, and we are now holding at that level. We need a continuation of this minor positive consolidation for a bullish option. After that, the price could continue towards the $6.00 level. Additional resistance at that level is the MA50 moving average. A price break above that level could further strengthen the bullish impulse to $6.60. We need a negative consolidation and a pullback below the $5.60 level for a bearish option. A break below would take us back into negative territory, and the price could retest the $5.40 level. Potential lower support targets for us are the $5.20 and $5.00 levels.
At a press conference on Thursday, Biden said Americans would suffer high gas prices for as long as Russia is not defeated.
Jim Tankersley, a journalist from the New York Times, asked the president on the last day of the NATO summit how long American drivers would have to pay the gas premium.
Some analysts think, “The war has pushed prices up; they could go as high as $200 a barrel.” How long is it fair to predict American drivers and drivers worldwide to pay that premium for this war?” Tankersley asked.
“As long as it takes Russia, in fact, cannot defeat Ukraine,” President Biden replied.
The Biden administration is under extreme pressure to lower American pump prices. Gasoline prices began to rise in early 2021 as post-pandemic demand came back online. US refineries are now operating at 95% capacity, and gasoline prices have risen further as crude oil prices have risen following Russia’s invasion of Ukraine.