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Oil and Natural Gas: New high this year and more

  • During the Asian session, the price of oil stagnated with a slight retreat towards lower levels of support.
  • The price of natural gas yesterday formed a new high this year at $ 9.60.
  • The explosion at Texas’s liquefied natural gas (LNG) export terminal has led to a drop in natural gas prices as ambulance crews react and details continue to arrive.

Oil analysis chart

During the Asian session, the price of oil stagnated with a slight retreat towards lower levels of support. After yesterday’s high at $ 123.10, the oil price fell to $ 121.30 this morning. We are now consolidating around $ 122.00. This pullback to the $ 120.00 price could continue today so that we can find support for the next stronger bullish impulse. We need a continuation of this week’s bullish consolidation and a new visit to the $ 123.00 zone for the bullish option. Further bullish consolidation opens the door for us to visit the next higher levels. Potential targets are $ 124.00, $ 125.00 $ 126.00 levels. For the bearish option, we need the continuation of today’s negative consolidation and the fall below the $ 121.00 and MA50 moving average. After that, the price would probably visit the $ 120.00 support zone. A break below this very important support for oil price could bring us down to the $ 118.00 level and maybe even to the $ 116.00 bottom line of support.

Oil analysis chart

Natural gas chart analysis

The price of natural gas yesterday formed a new high this year at $ 9.60. The stay on that level did not last long, and the price dropped sharply to this morning’s $ 8.00. A smaller recovery was seen up to $ 8.20, but now the price of natural gas is again leaning towards the bearish side. We could see break prices below, and our potential lower support levels are $ 7.80, $ 7.60 and $ 7.40. For the bully option, we need levels of positive consolidation and a price return of up to $ 8.80. We would gain additional support in the MA200 moving average, which could boost the price to progress further. Potential higher targets are $ 9.00, $ 9.20 and yesterday’s high at $ 9.60.

Natural gas chart analysis

Market overview

The explosion at Texas’s liquefied natural gas (LNG) export terminal has led to a drop in natural gas prices as ambulance crews react and details continue to arrive. At 11:40 a.m. CT, an explosion shook Freeport’s oil and gas export terminal, and ambulance crews were on the scene just over an hour later, according to media reports.

The export terminal, located on Quintana Island off the coast of Upper Texas, has three production units, or trains, to give the plant an LNG liquid capacity of about 15 million metric tons per year. The fourth train under construction has also been approved. The Freeport terminal currently produces about 2 billion cubic feet of LNG daily. Henry Hub’s natural gas fell by more than 6% after the news of the explosion.

Earlier on Wednesday, natural gas prices reached a 14-year record. On Tuesday, natural gas futures strengthened by over 10% and closed at $ 9.29. This led to an increase in the price of natural gas by 150% compared to the previous year.



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