Oil and Natural Gas: Two-month minimum 

• Yesterday, the oil price tried to climb above the $80.00 level, but without success because it encountered resistance.
• The price of natural gas yesterday formed its two-month minimum at the $6.50 level.
• Danish authorities have warned ships to avoid the waters around the island of Bornholm in the Baltic Sea, within a radius of five nautical miles.

Oil chart analysis

Yesterday, the oil price tried to climb above the $80.00 level, but without success because it encountered resistance. A quick drop to the $76.00 support level followed soon after. During the Asian trading session, the price of oil managed to find support in that place to start a recovery. Today’s high is $78.50, and we are now around the $78.00 level. We need a new negative consolidation and a drop in oil prices to this morning’s support level for a bearish option. A price break below would form a new lower low; based on that, we could expect a deeper price pullback. Potential lower targets are $75.00 and $74.00 levels. We need a positive consolidation and a break above the $78.00 level for a bullish option. Then we need to hold above if we want to see the continuation of the bullish recovery. Potential higher targets are $79.00 and $80.00 levels.

Natural gas chart analysis

The price of natural gas yesterday formed its two-month minimum at the $6.50 level. It finds support there and begins a recovery to the $7.00 level. During the Asian trading session, the gas price rose to the $7.10 level, where we have resistance for now and see a new price pullback. We need a continuation of this negative bearish trend and a drop to the $6.80 support level for a bearish option. A further drop below would increase the bearish pressure, and we would retest support at the $6.50 level. The potential lower target is the $6.40 level. For a bullish option, we need a new positive consolidation and a jump to the $7.20 level. Then we must stay there and continue the price recovery with a new bullish impulse. Potential higher targets are $7.40 and $7.60 levels.

Market Overview

Danish authorities have warned ships to avoid the waters around the island of Bornholm in the Baltic Sea, within a radius of five nautical miles, due to a gas leak from the Nord Stream 2 pipeline, and a pressure drop was also detected in Nord Stream 1. The German Government Said It was in contact with the Danish Authorities. They are now working with local investigative authorities to find out what Led to the sudden drop in pressure in the pipeline, reports Reuters.

The leak in Nord Stream 2 on Monday occurred on Danish territory, the Danish Energy Agency announced.

A warning was also issued by the Swedish maritime authorities, who stated that there was damage to the Nord Stream and that navigation was dangerous due to gas leaking into the Baltic Sea near the island of Bornholm.

The operator of North Stream 2 says that the pressure in the pipeline dropped from 105 to seven bars during the night.