Oil and Natural Gas: The Pressure Increasing Again
- Today’s oil price fell to the $81.20 level, continuing last week’s bearish trend.
- The price of natural gas managed to stay above $7.80 for the second day.
- The US Energy Information Administration said in its monthly that it expects global crude oil demand to increase in the fourth quarter of 2022.
Oil chart analysis
Today’s oil price fell to the $81.20 level, continuing last week’s bearish trend. The price managed to recover above the $82.00 level and is holding above for now. For a bullish option, we need a positive consolidator that would take us up to the $84.00 level. If we were to make a break above, the price of oil would form the bottom of the chart, which is a sign of potential further recovery. Our following higher targets would be $86.00 and $88.00, the previous high. For a bearish option, we need a negative consolidation and a return of the price below the $82.00 level. Increased bearish pressure could take us down to the $80.00 support level.
Natural gas chart analysis
The price of natural gas managed to stay above $7.80 for the second day. We see the pressure increasing, and a break below that support level could happen. The next bearish target is the $7.60 level, where we found support exactly one month ago. The same could happen now. Potential lower targets are $7.40 and $7.20 levels. We need a new positive consolidation and a break above the $8.00 level for a bullish option. Then we need to stay above and move towards the $8.20 level with a new bullish impulse. Potential higher targets are $8.40 and $8.60 levels.
Market Overview
The US Energy Information Administration said in its monthly that it expects global crude oil demand to increase in the fourth quarter of 2022 and the first half of 2023 as rising natural gas prices force countries to switch to fuel oil in the winter. The American Petroleum Institute released a report yesterday that showed an increase of 3.645 million barrels a week earlier. Economists had expected a decline of 0.733 million.
