Oil and natural gas: oil prices fall below $80.00
- During the Asian trading session, the oil price tried to maintain around the $81.00 level.
- The price of natural gas continues to recover, rising to the $2.35 level.
Oil chart analysis
During the Asian trading session, the oil price tried to maintain around the $81.00 level. The price failed to do so, and we saw a pullback and drop below the $80.00 level. The pullback continued during the EU session, and the price fell to $79.00. Inflation data in the UK and the EU zone are still high, meaning that interest rates will continue to rise. Such a scenario would lead to the strengthening of currencies and, therefore, to a drop in the price of oil. If this trend continues, the price of oil could fall to even lower levels. Potential lower targets are the $78.00 and $77.00 levels. The decline might not stop there either, and oil prices could erase the entire April gain by falling to the $75.00 level. Thus, we would return to the position before OPEC and Russia announced the reduction of oil production.
Natural gas chart analysis
The price of natural gas continues to recover, rising to the $2.35 level. We currently have resistance at that level, and the price is returning to $2.30. We need a breakout below and negative consolidation for a bearish option for a further pullback. Potential lower support targets are the $2.25 and $2.20 levels. For a bullish option, staying above the $2.25 level is preferable; consolidate there and continue the recovery. We would have to break above the $2.35 level again. And the potential higher targets are the $2.40 and $2.45 levels.
