- During the Asian trading session, the price of oil hovered around $97.00, followed by a rapid drop to the $94.00 support level.
- Natural gas prices have pulled back and have been in the $9.20-$9.60 range for the previous five days.
- Russian oil production continued to exceed expectations six months after Russia’s war against Ukraine.
Oil chart analysis
During the Asian trading session, the price of oil hovered around $97.00, followed by a rapid drop to the $94.00 support level. If this pressure on the price of oil continues, we could see a continuation of the price drop to the $92.00 level, a place of support from the beginning of the week. For a bearish option, we now need a break below the $94.00 level to move below and continue towards a lower support level. In the zone around $92.00, we have additional support and a potential stop of the bearish trend in the MA200 moving average. For a bullish option, we need a new positive consolidation. After that, the oil price could climb up to $95.00 before continuing towards the $96.00 level. If it succeeds in this, the next move is to back above and continue the bullish option. Potential higher targets are $97.00 and $98.00 levels.
Natural gas chart analysis
After last week’s failure to climb above the $10.00 level, natural gas prices have pulled back and have been in the $9.20-$9.60 range for the previous five days. Today we have more pressure on the $9.20 support level, and maybe a break below could happen, and the price will continue to fall towards $9.00 and maybe below. We need a negative consolidation and a drop below the $9.20 level for a bearish option. After that, we can expect the price to continue sliding towards the $9.00 level and try to find support there. The potential next support is at the $8.80 level, our two-week low. For a bullish option, we need a new positive consolidation and a return above the $9.40 level. If the price were to succeed, it would gain additional support in the moving averages. And potential higher targets are $9.60, $9.80, and $10.00.
Russian oil production continued to exceed expectations six months after Russia’s war against Ukraine. Western experts warn that it will be increasingly difficult for Moscow to maintain production due to economic sanctions. Exports to India have managed to offset much of the reduced flows to Western countries. Based on reports, India cut its crude oil imports from the United States by one million tonnes during the second quarter while sharply increasing its imports of cheaper Russian crude.
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