Oil and Natural Gas: Shutting Down
- During the Asian trading session, the price of oil managed to stay in the range of $88.50-$89.50.
- The gas price has now formed a new three-week low at the $8.60 support level.
- Gazprom will not restart the Nord Stream 1 gas pipeline until Siemens Energy, the maintenance company, has repaired all the necessary equipment.
Oil chart analysis
During the Asian trading session, the price of oil managed to stay in the range of $88.50-$89.50. That didn’t last long, and in the European trading session, we saw a bearish impulse that pushed the price of oil down to the $86.00 support level. There is increasing pressure on the price of oil, and a break below and continuation of the bearish trend could happen. If that were to happen, the price could first test the $85.00 level. And if we don’t get support there, the potential lower targets are $84.00, then the even lower $82.00 level. For a bullish option, we must first hold above the current support at $86.00. We need another positive consolidation and a return to the $88.00 resistance level. A break above would help us to continue on the bullish side. Potential higher targets are $89.00 and $90.00 levels.
Natural gas chart analysis
The gas price has now formed a new three-week low at the $8.60 support level. The price has been in a bearish trend for the past two weeks after climbing to the $10.00 level. Today’s maximum is at the $8.88 level. The continuation to the bearish side prevails, and soon we could see a break below and a drop to the $8.40 level. If even that level does not provide sufficient support, the gas price could continue to fall. Potential lower targets are $8.20 and $8.00 level, the one-month low. For a bullish option, we need a new positive consolidation and a return of the gas price above the $8.80 level. Then we need to hold on there and continue towards the $9.00 level with a new bullish impulse. Potential higher targets are $9.20 and $9.40 levels.
Gazprom will not restart the Nord Stream 1 gas pipeline until Siemens Energy, the maintenance company, has repaired all the necessary equipment. This was stated today by the executive director of Gazprom. Gazprom suspended gas flow through Nord Stream 1 last Friday, initially saying it would restart on Saturday. Later, Gazprom announced that it had discovered an oil leak in the Portovaya compressor station and that this was the reason for shutting down Severn Stream 1 for an indefinite period of time.