Oil and Natural Gas Just Hits a New high – May 13
- The oil price On May 11, dropped to $ 98.17.
- The price of natural gas is already in the bullish trend for the fourth day after the price dropped to 6.34 dollars.
- Russia stops gas supplies to Finland
Oil chart analyisis
The oil price is in the bullish trend for the third day in a row. On May 11, the price dropped to $ 98.17, which was soon followed by a strong bullish impulse that pulled the price again above the $ 100.00 level. Today, the price has already recovered to the $ 108.00 level, and so far, there are no indications of a potential weakening. Our next psychological target is the $ 110.00 level, a place where we can expect the next potential resistance or the next consolidation. Our target is high this week at $ 111.00.
From May 11 until today, the oil price has recovered by more than 10%. For the bearish option, we need new negative consolidation and pullback prices. Our bearish targets are $ 106.27, $ 105.50, $ 104.90, $ 103.00 and so on.
Natural gas chart analysis
The price of natural gas is already in the bullish trend for the fourth day after the price dropped to 6.34 dollars. Today’s high is $ 7.85, and now we have a shorter withdrawal, but all as part of bullish consolidation. For the bullish option, we need to continue this positive consolidation in order to climb to the $ 8.20 level. Our following bullish targets are $ 8.35, $ 8.67 and an $ 8.87 May high.
For the bearish option, we need a new negative consolidation and pullback to the previous first support at $ 7.18. Potential bearish targets are $ 6.88, $ 6.34 and so on.
Market overview
Russia stops gas supplies to Finland
Hours after Moscow warned that there would be retaliation for Helsinki’s announcement to apply for NATO membership, Finnish media reported that the Kremlin had threatened to cut off Russian gas by Friday.
Before this warning, local media noted expectations that Russia would be cut off from Russian gas after May 23, when the next payment of the contract with Gazprom is due, and the country refuses to pay in rubles. In late April, Russia cut off gas supplies to Poland and Bulgaria for refusing to pay under the Kremlin’s ruble scheme. Between 60% and 70% of Finland’s natural gas comes from Russia, although the country’s main energy sources are oil, biomass and nuclear energy, with natural gas accounting for only 5% of total consumption.
According to the Finnish government, renewable energy has exceeded fossil fuels in total energy consumption in 2020. Finland announced on Thursday that it intends to apply for quick NATO membership due to the Russian aggression in Ukraine. Sweden is expected to announce this in the coming days.
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