Oil Price Consolidation: $77.50-$78.00 Range Today

The oil price rose to $78.44 yesterday, forming a two-week high. After that, we are looking at consolidation in the $77.50-$78.00 range.
The price of natural gas fell yesterday to a new low of $1.72.

Oil chart analysis

The oil price rose to $78.44 yesterday, forming a two-week high. After that, we are looking at consolidation in the $77.50-$78.00 range. It remained high and we expect to see continued growth to the bullish side.

Potential higher targets are $78.50 and $79.00 levels. This afternoon, we will have news on The Energy Information Administration’s (EIA) Crude Oil Inventories, and depending on that report, there will be oil price movements.

A drop in oil price to the $77.00 level would increase the bearish momentum. This would force the price to start a pullback to a lower support level. Potential lower targets are $76.50 and $76.00 levels. EMA200 moving average is in the zone around $76.00 levels.

Natural gas chart analysis

The price of natural gas fell yesterday to a new low of $1.72. Stopped exports by the US administration and good weather are holding the gas price to a new multi-year low. During the previous Asian session, the price managed to stay above that level and move up to $1.75. If we were to skip that level, we would have the opportunity to start a bullish consolidation in opposition.

Potential higher targets are $1.80 and $1.85 levels. If the picture surrounding the natural gas export does not change, we will see a price retreat and the formation of a new low. Potential lower targets are $1.70 and $1.65 levels.

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