Oil and Natural Gas: The oil is on its way to the $74.00
- During the Asian trading session, the oil price was above the $73.40 level.
- The price of natural gas fell to the $2.02 level this morning.
Oil chart analysis
During the Asian trading session, the oil price was above the $73.40 level. Oil has been in a bullish trend since the beginning of the week, and we could expect to see a continuation. Potential higher targets are the $74.67 and $75.50 levels. We need a pullback below the $73.00 level for a Bearish option. This would cause the price to fall below the EMA20 moving average, which would mean a possible further pullback.
Potential lower targets are the $72.12 and $71.70 levels. Yesterday’s report from the American Petroleum Institute showed a drop in crude oil inventories, which strengthened the price of oil. An additional reason for the price strengthening during the previous day is the reaction to the problems in oil transportation between Iraq and the Kurdish territory.
Natural gas chart analysis
The price of natural gas fell to the $2.02 level this morning. If this trend continues, the price could very quickly fall below the $2.00 level. Potential lower targets are the $1.90 and $1.80 levels. The last time NATGAS was below $2.00 was 7 years ago. We need a new positive consolidation and price stabilisation above the $2.10 level for a bullish option.
If we succeed in this, the gas price would have a better position, and we could see further recovery. Potential higher targets are the $2.15 and $2.20 levels.
