Oil and Natural Gas: Oil Price Resistance Was at $85.00
- Today’s resistance to the oil price was at $85.00.
- The price of natural gas yesterday found support at the $4.80 level, after which we saw a recovery to the $5.20 level.
Oil chart analysis
Today’s resistance to the oil price was at $85.00. The inability of the price to move above caused the price to plummet to the $83.25 level. We are now very close to the lower $82.00-$82.50 support zone. If the price stays in that zone for a longer time, a break below and a further pullback of the price could happen.
Potential lower targets are the $80.00 and $79.00 levels. For a bullish option, we need a positive consolidation and a return to this morning’s resistance level of $85.00. Then we need to hold on there and, with the next bullish impulse, start the continuation of the oil price recovery. Potential higher targets are $86.00, $88.00 and $90.00 levels.
Natural gas chart analysis
The price of natural gas yesterday found support at the $4.80 level, after which we saw a recovery to the $5.20 level. During the Asian trading session, the price of oil moved in the range of $5.10-$5.30 levels. The price is currently stable, and a further recovery to the $5.40 level could be seen despite the present bearish pressure. Potential higher targets are the $5.60 and $5.80 levels.
For a bearish option, we need a negative consolidation and price pullback to the $5.00 level. That would bring us back to the critical zone, and we could retest yesterday’s low at the $4.80 level. Potential lower targets are the $4.60 and $4.40 levels.
On Friday, the Saudi Energy Minister said that OPEC+ is doing the right thing for a stable energy market. An Iranian official called the US to “if they want a lower price of oil on the market, they must remove the sanctions first.” US officials told Reuters that Russia could bypass the G7’s new price ceiling on its oil exports. Moscow has access to enough tankers to ship most of its oil to make the price cap ineffective.