Oil prices rose and Natural Gas prices dropped drastically
- During the Asian trading session, the price of crude oil rose to a new level this month to 116.42 dollars.
- The price of natural gas dropped drastically on Friday after rising to $ 9.33 on Thursday.
- Oil prices rose on Monday, reaching their highest level in more than two months.
Oil analysis chart
During the Asian trading session, the price of crude oil rose to a new level this month to 116.42 dollars. The beginning of the driving season in the USA this weekend, mostly low levels of oil and derivative stocks with further decline and uncertainty regarding the EU’s decision to impose an embargo on oil imports from Russia, all together pushes the price of oil up. The continental members of the EU will most likely be given a concession so that they can import oil from Russia through oil pipelines, while European ports will be closed for oil from Russia. About two-thirds of oil from Russia arrives in Europe by overseas tankers. Crude oil is trading at $ 115.47 a barrel, up 0.35% from last night.
We need a break above this morning’s maximum for the bullish option. After that, the price could go up to the $ 117.00 level. If the bullish momentum continues, we could see oil again this week at $ 120.00. For the bearish option, we need a continuation of this less negative consolidation and a pullback to the previous zone of around $ 114.00. A price break below this support zone could lower us to $ 112.00 first, and if it doesn’t hold up, we go further down to the bottom trend line and the $ 110.00 level.
Natural gas chart analysis
The price of natural gas dropped drastically on Friday after rising to $ 9.33 on Thursday. On Friday, the gas price dropped to $ 8.20, and now we see a recovery to $ 8.70. Today’s price movement is neutral, with a slight bearish feeling that we will see a new pullback. We need a negative consolidation and a pullback to the previous low of Friday for the bearish option. Potential support at that level is in the lower trend line. Break prices below would bring us down to testing the $ 8.00 level. Our following potential targets are $ 7.80, $ 7.60, $ 7.40 and so on towards the $ 7.00 level. We need a bullish boost above the current consolidation and an $ 8.80 price tag for the bullish option. Potential following bullish targets are $ 90.00, $ 9.20 and the previous high at $ 9.33.
Market overview
EU summit and new sanctions for Russia
Oil prices rose on Monday, reaching their highest level in more than two months, while traders waited to see if an agreement on a ban on Russian oil imports would be reached at a planned meeting of the European Union.
The EU is scheduled to meet on Monday and Tuesday to discuss the sixth package of sanctions against Russia over its invasion of Ukraine, an action Moscow calls a “special military operation.”
EU governments disagreed on an embargo on Russian oil on Sunday. Still, they will continue talks on an agreement to ban deliveries by the sea while allowing deliveries by an oil pipeline.
Any additional ban on Russian oil would tighten the crude oil market, which is already burdened with supplies due to growing demand for gasoline, diesel and aircraft fuel ahead of the peak summer season and demand in the United States and Europe.
