Oil and Natural Gas Price Rose
- During Asian trade, the oil price rose significantly, confirming yesterday’s gains.
- Gas price continues its bullish trend that started on May 10, when it dropped to $ 6.34.
- WTI prices rose further on Monday.
Oil analysis chart
During Asian trade, the oil price rose significantly, confirming yesterday’s gains. China is recording a better health situation in Shanghai, and the lockdown in Shanghai could be lifted on June 1 if the positive trend of fewer newly infected people continues. Poor economic data from China from yesterday received a counterbalance in this news. The US strategic reserves are at their lowest level since 1987. The meeting of EU foreign ministers yesterday showed that the harmonization of positions, i.e. persuading Hungary to agree to an oil embargo on Russia, continues. Crude oil traded at $ 114.75 a barrel, up 0.90% from trading tonight.
At 22:30, the issue of the American Petroleum Institute on the state of crude oil stocks in the USA will be published. The oil price is now testing the $ 115.00 level, and it is possible to see the marriage above and the continuation of the bullish trend. Potential bullish targets are $ 116.00, then $ 116.60 high from April 24th. We need a new negative consolidation and a price withdrawal up to the $ 110-111.00 zone for the bearish option. Additional support is provided by the trend line from May 11, when the price found support at $ 98.17. Breaking the oil price below the trend line would increase bearish pressure and could lower the price to the $ 100.00 psychological level.
Natural gas chart analysis
Gas price continues its bullish trend that started on May 10, when it dropped to $ 6.34. Today’s high is $ 8.10, and if we follow the current consolidation, we see that the price could break above and continue on the bullish side. Gas prices made up for about 70.0% of their previous losses, from $ 8.87 to $ 6.34. Despite the end of the heating season and the demand reduction, we can see that the price is stable and growing slowly. For the bearish option, we need negative consolidation and a pullback below $ 7.60. After that, we can expect increased bearish pressure and further lowering of the price towards the previous support zones. Potential bearish targets are $ 7.43, $ 7.18, $ 7.00, etc.
Market overview
WTI prices rose further on Monday. This move was in tandem with growing open interest and scope and opened the door for the continuation of the upward trend in the very near future. Crude oil futures markets said traders added about 14.6 thousand contracts to their open interest rates on Monday.
On Monday, authorities in Shanghai said that restrictions would finally be eased, but gradually in phases, after nearly six weeks of quarantine that shook the Chinese economy and disrupted global supply chains. The blockades are planned to end on June 1 in Shanghai, and the gradual easing will begin on May 21.
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