Oil and Natural gas: OPEC pushes the price above $80.00

• Today, the Organization of Oil Producers OPEC+ announced a voluntary reduction in oil production from May until the end of 2023. 
• At the beginning of the Asian session, the price of NATGAS fell below $2.00, forming a new lower low at the $1.97 level.

Oil chart analysis

Today, the Organization of Oil Producers OPEC+ announced a voluntary reduction in oil production from May until the end of 2023. OPEC’s decision was joined by Russia, which also announced a reduction in production by 500,000 barrels per day. This kind of news pushed the price of oil to the $81.50 level at the very beginning of the opening of the Asian session. After that, we saw the price pull back to $79.00 and start a new uptrend.

The price is now at the $80.00 level, and there is every chance that we could see further growth. Potential higher targets are $81.00 again and $82.00 levels. We need a negative consolidation and a drop below this morning’s support at the $79.00 level for a bearish option. Potential lower targets are $78.50 and $78.00 on the EMA20 moving average.

Natural gas chart analysis

At the beginning of the Asian session, the price of NATGAS fell below $2.00, forming a new lower low at the $1.97 level. Price pressure is still strong, which keeps NATGAS below the $2.00 level. Additional pressure is also created by the EMA20 moving average that follows this trend.

We need a positive consolidation and price movement to the $2.05 level for a bullish option. Thus, we would partially move out of the critical zone. A potential higher target is the $2.10-$2.13 resistance zone. We need a negative consolidation and a price drop below the $1.97 level for a bearish option. Potential lower targets are the $1.94 and $1.90 levels.