Oil and Gas Headlines

• During the Asian trading session, the oil price dropped to $85.50, where it found support.
• The natural gas price remained above the $8.00 level for the second day.
• Gasoline prices in the United States could rise this winter.

Oil chart analysis

During the Asian trading session, the oil price dropped to $85.50, where it found support.

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After that, we see a break above the $86.00 level and a strong bullish impulse that took us up to the $88.00 resistance level. There we encounter immediate resistance, and the price makes a retreat to the $87.30 level. Additional support at that level is in the MA200 moving average. If we managed to stay above MA200, the price would probably start a new bullish impulse. Potential higher targets are $90.00 and $92.00 levels. For a bearish option, we need a continuation of this minor negative consolidation and a pullback to the $86.00 level. Additional support for us is the MA50 moving average in that zone. A price break below would likely continue the bearish trend. Potential lower targets are $84.00 and $82.00 levels.

Natural gas chart analysis

The natural gas price remained above the $8.00 level for the second day. During the Asian trading session, the price was stable and ranged between $8.00 and $8.20. We need a positive consolidation and a break above the $8.20 level for a bullish option. In the continuation, the price could rise to the $8.40 level. The next target is the $8.60 level, and the additional resistance in that zone is the MA200 moving average. We need a negative consolidation and a break below the $8.00 level for a bearish option. If the price stays below, we will see the continuation of the bearish trend. Potential lower targets are $7.80 and $7.60 levels.

Market Overview

Gasoline prices in the United States could rise this winter. An embargo on the import of Russian oil is coming into force in the European Union, warned the Secretary of Finance, Janet Yellen. The G7 group has agreed to impose a price cap on Russian oil exports, but they do not yet have the tools to make such a move. In one of the sanctions packages against Russia, the European Union agreed on an embargo on Russian oil and fuel, which will come into force in December.

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