The Pressure on the Price is too Great 

• During the Asian trading session, the price of oil hovered around the $89.00 level.
• Today, the price of gas was in the range of $9.10-$9.40.
• European Union gas storages are up to 80% full, Energy Commissioner Kadri Simson said.

Oil chart analysis

During the Asian trading session, the price of oil hovered around the $89.00 level. A drop followed it to the $88.00 level because the pressure on the price was too great due to new closures of cities in China and announcements by central banks to continue increasing interest rates. This will lead to a decrease in investment and demand for oil. We need a continuation of negative consolidation and a drop below the $87.50 support level for a bearish option. If the price succeeds in this, it will open up space for us towards lower support levels. Potential lower targets are $87.00 and $86.00 levels. For a bullish option, we need a new positive consolidation and growth of the oil price to the $90.00 level. A price break above would be of great help to us. The Ma50 moving average may represent an obstacle for us at the $90.50 level. A potential higher target is the $92,00 resistance level.

Natural gas chart analysis

Today, the price of gas was in the range of $9.10-$9.40. For now, we manage to hold above the $9.20 level, and we need a new bullish impulse that would move us above the $9.40 level. Additional resistance at that point is in the MA200 moving average. The potential next target is the $9.60 previous resistance zone. For a bearish option, we need a new negative consolidation and a drop in the gas price below the $9.20 support level. After that, we could expect the price to continue sliding lower. Potential lower targets are $9.00 and $8.80 levels.

Market Overview

European Union gas storages are up to 80% full, Energy Commissioner Kadri Simson said. The EU has a deadline in October to fill its gas storage by 80% before the start of the heating season. All due to significantly weakened the security of energy supply and reduced flows of Russian gas through Nord Stream 1. The head of the German energy regulator said that the largest economy of the European Union would have to reduce gas consumption by at least a fifth to have a chance to survive the upcoming winter.

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