Oil and Natural Gas: Price down
During the Asian trading session, the price of raw materials recovered.
The price of natural gas continues its consolidation from yesterday, but today with fresh pressure at the $ 6.60 level.
According to data on monitoring tankers collected by Bloomberg, European refineries took an increasing amount of crude oil last week.
Oil chart analysis
During the Asian trading session, the price of raw materials recovered. Fear of the recession and the lower demand for oil that goes with it pushed the price of oil down on Friday. However, the driving season in the USA and Europe is already in full swing, and the demand for petroleum products is increasing, while the stocks of petroleum products worldwide are at a very low level. Russia delivered the most oil to China in May, of course with a considerable discount, and surpassed Saudi Arabia in the position of the main Chinese oil supplier. Crude oil is trading at $ 110.20 a barrel, up 2.08% from last night. Price is now seeking support at $ 110.00 with support in the MA20 and MA50 moving averages to continue further recovery. Potential higher targets are $ 112.00, $ 114.00 and $ 116.00 levels. We need a negative consolidation and a break below the $ 110.00 level for the bearish option. After that, we can expect further price withdrawals towards the $ 109.00, $ 108.00 and $ 106.00 levels.
Natural gas chart analysis
The price of natural gas continues its consolidation from yesterday, but today with fresh pressure at the $ 6.60 level. The break price below is now a matter of minutes. We are looking for the next support at the $ 6.40 level; if it does not last, the price could drop to the $ 6.00 level. For the bullish option, we need a new positive consolidation and a return above the $ 7.00 level. After that, we can expect a further price recovery towards higher levels. Potential higher targets are $ 7.20, $ 7.40, etc., up to $ 8.0 previous high of June 16th.
According to data on monitoring tankers collected by Bloomberg, European refineries took an increasing amount of crude oil last week. Last week, European refineries consumed 1.84 million barrels of Russian crude oil per day, the third increase in the amount of Russian crude oil for refineries in the same number of weeks. Oil flows from Russia to Europe, including Turkey, are now the highest in almost two months.
The increases came mainly from the Russian Litasco SA. Lukoil has three refineries in Europe and continues to increase the purchase of Russian crude oil. Although the rest of Europe may not increase imports of Russian crude oil, the decline in imports has definitely slowed down, Bloomberg’s analysis reveals. The EU has agreed to impose an embargo on 90 % of its oil imports from Russia by the end of the year.
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