Business

Oil crash and natural gas extraction

  • At the start of the Asian session, oil fell to its lowest level this week at $98.11.
  • Gas prices continue yesterday’s bullish consolidation and range today between $7.22 and $7.50.
  • The sixth package of sanctions for Russia.
  • Open interest in futures in the natural gas market fell for the fourth straight day on Tuesday.

Overview oil table

At the start of the Asian session, oil fell to its lowest level this week at $98.11. Positive consolidation soon followed and the price was back above the $100 level. By the middle of the European session, oil had recovered $5 and jumped to $103.32. We now have a smaller payout of up to $102.55. The highest volatility on the oil chart was in the $101.90-$102.10 range and here we can look for potential support to continue the uptrend.

Our next target is yesterday’s high at $104.15. A break above it would be a sign that the price has formed a bottom from which it can continue towards the previous resistance zone of $110.00-111.00. For the bearish option, we need to pull the price back to the previous low of $98.11. If the price stays in this place longer, maybe we will see a breakout below. Possible lower support levels lie at the $97.00 and $96.00 prices.

Overview oil table

Overview of natural gas charts

Gas prices continue yesterday’s bullish consolidation and range today between $7.22 and $7.50. Yesterday’s decline was halted at the 6.34 level after which we had a quick recovery above the $7.00 price. The following key targets to track are the $7.80-7.85 zone first, then the $8.10-8.20. For the bearish option, we need fresh negative consolidation and pullback prices below $7.00. After that, we can expect the descent to continue towards the 6.35-6.75 support zone.

Targets below this zone are $6.22 and $5.98. Reduced demand during this period could further lower the price of natural gas, while the crisis in Ukraine and the embargo on Russian energy could have the opposite effect and increase the price of gas.

Overview of natural gas charts

Market Overview

The sixth package of sanctions for Russia

European Union Trade Commissioner and Executive Vice-President Valdis Dombrovskis said he still believes member states could reach an agreement on Russia’s sixth bloc sanctions package, including an oil ban. Bulgaria and several other EU member states have spoken out against an embargo on Russian oil imports.

Open interest in natural gas

Open interest in futures in the natural gas market fell for the fourth straight day on Tuesday. This time for around 9.2 thousand contracts, according to preliminary data from the CME Group. The volume fell by about 39.6 thousand contracts after three consecutive days of growth.

Natural gas found support near $6.50 and the region’s pullback from the region’s $6.50 rebound on Tuesday came amid declining open interest and volume, suggesting a sustained recovery in the very near term with the following notable Target at its current 2022 high of around $9.00 revealed May 6th.

BONUS VIDEO: Weekly news roundup from the markets

  • support

  • platform

  • Spread

  • trading instrument

Get the latest business news, trading news and forex news financial intermediation. Check out our comprehensive trading education and list of the best forex brokers here. If you are interested in following the latest news on this topic, please follow Finance Brokerage Google news.

https://www.financebrokerage.com/oil-crash-and-natural-gas-recovery-may-11/ Oil crash and natural gas extraction

Callan Tansill

InternetCloning is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@internetcloning.com. The content will be deleted within 24 hours.

Related Articles

Back to top button