Despite natural gas not being out of the woods yet, crude oil is expected to test $100

17 September 2023, Sunday
Despite natural gas not being out of the woods yet, crude oil is expected to test $100

Crude Oil and Natural Gas: What’s Happening?


Crude Oil’s Rise


Crude oil has been going up a lot since June. It broke through a resistance line that had been tested many times since the end of 2022. This breakout opened the way for oil to reach its highest point in October at 93.00.


There was also a double bottom in March and May, which means the price hit a low point and then went up again. This suggests that the price could rise even more, possibly reaching 103.


Natural Gas’s Narrowing Range


The trading range for natural gas has been getting smaller in recent weeks. This means that the price is not changing as much as before. However, natural gas has stayed above an important support line since July, which is around 2.40-2.50.


Even though the price has been stable, it hasn’t been able to go up much since the end of August. It tried to reach a high point in early August but couldn’t. This means that the five-month-long increase in price might be over if the support line at 2.40-2.50 breaks.


What’s Next?


For crude oil, if it can break through another resistance line at 93.00, it would confirm that the price will keep going up. This would also match up with a line on the weekly charts that shows a strong upward trend.


As for natural gas, if it can stay above 1.95-2.00, it might start to build a base and recover from the big drop it had last year. The possibility of natural gas hitting its lowest point was first mentioned in early 2023.