Oil and Natural gas: the price of oil stable above $80.00
- During the Asian trading session, the oil price was supported at the $80.00 level.
- During the Asian session, the NATGAS price recovered to the $2.06 level.
Oil chart analysis
During the Asian trading session, the oil price was supported at the $80.00 level. Since the beginning of the week, the price movement has been calm, not counting the jump at the opening of this week’s trading session. We are now close to the $81.00 level and could expect a break above to continue the bullish option.
Potential higher targets are the $82.00 and $83.00 levels. Russia will extend the voluntary reduction of oil production by 500,000 barrels per day until the end of this year, announced the Deputy Prime Minister of Russia, Alexander Novak. Several OPEC+ countries, including Saudi Arabia, have announced voluntary oil production cuts of 1.16 million barrels per day from May until the end of 2023, calling the move a precautionary measure to maintain market stability.
Natural gas chart analysis
During the Asian session, the NATGAS price recovered to the $2.06 level. The celebration at that level did not last long, and a pullback to the $2.02 level followed. The price of NATGAS is on its way to testing the $2.00 level again so that we may see a new breakout below. In that case, we would once again test yesterday’s low at the $1.97 level.
The major resistance to the move to the bullish side is the EMA50 moving average. As long as we are below it, we can only expect a drop in the price of NATGAS.
