Oil and Natural Gas: Price increase by 3.38%
- The price of oil has increased by 3.38%, from $87.00 to $89.80, and we may soon test the $90.00 level.
- The price of natural gas today is around the $9.00 level.
- OPEC+ is likely to keep oil production quotas unchanged for October at a meeting today, five OPEC+ sources said.
Oil chart analysis
Since the beginning of the Asian trading session, the price of oil has increased by 3.38%, from $87.00 to $89.80, and we may soon test the $90.00 level. In the bird’s eye, the price tried to make a break above, but without success, and we saw a pullback to the $87.00 support level. For a bullish option, we need to break prices above, then try to hold above there. And after that, let’s continue with the positive consolidation up to the $92.00 resistance level. Additional resistance to that level is in the MA200 moving average. We need a negative consolidation and pullback towards the $88.00 support level for a bearish option. If we do not hold above, we will see a break below and another visit to the $86.00-87.00 support zone. Potential lower targets are $85.00 and $84.00 levels.
Natural gas chart analysis
The price of natural gas today is around the $9.00 level, although still on the bearish side because we saw the formation of a new lower low on Friday, and for now, we are unable to form a new higher high on the chart. To continue the bullish consolidation, we need a price jump to the $9.20 level. Additional resistance at that level is in the MA200 moving average. If we could manage to climb above, we would have a better chance of continuing the recovery. Potential higher targets are $9.40 and $9.60 levels. For a bearish option, we need a negative consolidation and a price drop to the $8.80 support level. If we fail to hold on to that level, we will see a break below and the possible formation of a new lower low. Potential lower targets are $8.60 and $8.40 levels.
OPEC+ is likely to keep oil production quotas unchanged for October at a meeting today, five OPEC+ sources said. However, some sources did not rule out small production cuts to support falling prices on fears of an economic downturn. Iran is expected to increase output by 1 million barrels a day or 1% of global demand if sanctions are eased, although the prospect of a nuclear deal looked less likely on Friday.