Oil and Natural gas – Price record and more
- During the Asian session, the price of crude oil rose slightly.
- The price of natural gas yesterday recorded its new maximum this year at $ 8.90.
- The U.S. Petroleum Institute reported a slight increase in 567,000 barrels of crude oil this week.
Oil analysis chart
During the Asian session, the price of crude oil rose slightly. The American Petroleum Institute announced last night that crude oil stocks in the USA increased by 567,000 barrels. The German Minister of Economics stated yesterday that the EU and the USA plan to introduce a measure limiting price growth. Hungary still does not want to impose sanctions on oil imports from Russia. Crude oil is trading at $ 111.20 a barrel, up 1.27% from trading tonight. At 16:30, an official government report will be released on the state of crude oil and petroleum products in the United States. Oil continues to move in the May rising channel, and if the price stays above $ 110.00, we can expect further growth towards the previous high at $ 115.50. First, we need a break above the $ 112.00 price, and then we would encounter potential resistance at $ 114.00 before testing the previous high. For the bearish option, we need a drop in oil price below $ 110.00. After that, we can expect a possible bearish consolidation to the lower support line in the zone around $ 106.00.
Natural gas chart analysis
The price of natural gas yesterday recorded its new maximum this year at $ 8.90. The previous high was $ 8.86 on May 8. Today, the price is calm and ranges from 8.69-8.85 dollars. We could soon raise the price to the $ 9.00 level. Geopolitical instability, caused by Russian intervention in Ukraine and economic sanctions imposed by the West on Russia, keeps the price very high at this time of year. Based on that, we can expect a break above $ 9.00. Potential bullish targets are $ 9.20 and $ 9.40. We need a new negative consolidation and a price withdrawal below the $ 8.60 level for the bearish option. After that, we can expect a further lowering of the price towards the lower support line. Our potential bearish targets are $ 8.40, $ 8.20 and $ 8.00.
The U.S. Petroleum Institute reported a slight increase in 567,000 barrels of crude oil this week.
The withdrawal came even when the Ministry of Energy released 6 million barrels from strategic oil reserves in the week ending May 20.
According to API data, U.S. crude oil inventories have fallen by about 75 million barrels since the beginning of 2021 and about 18 million barrels since the beginning of 2020.
Last week, the API reported a reduction in crude oil inventories of 2.445 million barrels after analysts predicted an increase of 1.533 million barrels.
Crude oil production in the United States rose to 11.9 million barrels per day in the week ending May 13. Crude oil production in the United States is lower by 1.2 million barrels per day compared to the period before the pandemic.