Comparative Analysis Of Natural Gas And WTI On May 3 Defines A Lot?
2022.05.04 10:12
On Apr. 11, natural gas was sustaining at $6.248, a primary indicator of an upcoming breakout move, and finally, the natural gas hit a new high at $8.063 on Apr. 18.
Sellers dragged down natural gas to hit $6.431 on Apr. 22 but could not discourage the natural gas bulls on Apr. 23, after the prices found a massive support at 26 Days Moving Average in a daily chart at $6.414 at that time.
Since then, the natural gas bulls have remained aggressive with increasing storage phobia amid Russia’s demand to pay in rubles to continue crude oil and gas supply to European nations.
WTI Crude Oil Futures Daily Chart.
No doubt that most of the analysts expressed doubts about the further bullish moves by natural gas as the weather-generated demand was looking weaker, but my views on increasing bullish sentiments were intact.
On Apr. 30, I warned natural gas bears to remain wary as the European Commission could take decisive action over Russia’s blackmailing strategy on energy as the western countries have imposed sanctions due to Russia’s invasion of Ukraine.
Finally, the EU’s Commission came forward with final guidelines for Russia’s ruble demand for gas and oil on May 2, 2022. Consequently, there was a steep reversal in oil and gas prices on Monday from the lower levels.
On May 3, natural gas broke out after hitting a new high at $8.165 as the bulls looked aggressive above $7.777. Natural gas is currently trading at $8.037. But the immediate resistance at $8.063 could turn into massive support if the price finds a day’s closing above this level.
Natural gas futures daily chart.
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