Oil Price Goes Up, and Natural Gas Price Goes Down.
- During the Asian trading session, the price of oil continues to rise.
- The price of natural gas stopped at the $7.10 level yesterday.
- Oil stabilized on Friday before the release of key economic data in the US.
Oil chart analysis
During the Asian trading session, the price of oil continues to rise. We are currently at $89.40, and very close to revisiting the $90.20 level. by the Fibonacci setting, we see that the price is now testing the 61.8% level. Since we are in a bullish trend, we are likely to see the price move above and the price of oil continue to rise. Potential higher targets are $91.00, $92.00 and $93.0 at the 78.6% Fibonacci level. For a bearish option, we need a new negative consolidation and oil price pullback to the 50.0% Fibonacci level at $87.00. The inability to hold here could further lower the price to the previous low at the $86.00 level.
Natural gas chart analysis
The price of natural gas stopped at the $7.10 level yesterday. After that, we see a quick pullback below the $7.00 level. The price continues to fall to the $6.80 level, then to the current $6.65 level. We could find potential support at the $6.60 level. If we fail to maintain that level, the gas price will continue with negative consolidation until the next lower support zone. Potential lower levels are $6.40 and $6.20 levels. For a bullish option, we need a new positive consolidation and price return to the $7.00-$7.10 zone. Then we need to hold up there and try to make a break above the $7.20 level.
Market Overview
Oil stabilized on Friday before the release of key economic data in the US. A stronger dollar increased pressure on oil prices following statements from the Federal Reserve, signaling further aggressive policy tightening by the Central Bank. The production cut announced by OPEC+ comes ahead of the introduction of an embargo on Russian oil by the European Union. The decision will lead to a reduction in supply, leading to an increase in oil prices, further increasing inflation.
