Oil and Natural Gas: US Inflation Shook The Price

Yesterday’s report on US inflation also shook the price of oil.
During the Asian trading session, the price of natural gas formed a new weekly high at the $8.50 level.
The Ministry of Energy released a record 8.4 million barrels from the strategic oil reserves last week.

Oil chart analysis

Yesterday’s report on US inflation also shook the price of oil. From $89.50, the price of oil dropped to $85.00. Then followed a quick recovery to the $88.00 level. During the Asian trading session, the price of oil fell again but now reached $86.20. We are now at the $87.30 level and again looking towards the $88.00 resistance level. We need a positive consolidation and a break above the resistance level to continue the bullish option. Then we need to hold on to that place. After that, we would have a chance to go up again with a new bullish impulse. Potential higher targets are $89.00 and $90.00 levels. For a bearish option, we need a negative consolidation and a drop in oil price to the $86.00 support level. A price break below would intensify the bearish pressure, and oil would likely continue to fall even lower. Potential lower targets are $85.00 and $84.00 levels.

Natural gas chart analysis

During the Asian trading session, the price of natural gas formed a new weekly high at the $8.50 level. Since then, we have been in a pullback, and the price has fallen below the $8.40 level. We have support in the MA50 moving average. To continue the bullish option, we need a new positive consolidation and a return above the $8.40 level. Then we must hold above and continue the upward trend with a new bullish impulse. Potential higher targets are $8.60 and $8.80 levels. We need a continuation of the negative consolidation and a drop below the MA50 moving average for a bearish option. Potential lower targets are $8.20 and $8.00 levels.

Market Overview

The American Petroleum Institute reported this week a crude oil increase of 6.035 million barrels, analysts’ forecast was for a draw of 200,000 barrels. The Ministry of Energy released a record 8.4 million barrels from the strategic oil reserves last week.

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