From the last three consecutive sessions, oil prices are rising. Whereas natural gas is reflecting a range-bound trend in the commodities market.
The Biden Government delivered a statement stating to call an OPEC in order to increase the production of oil. Thus, to control the battle of climbing gasoline prices in the U.S.
As per the Report, the Biden government expressed to UAE, Saudi Arabia, and other OPEC + members that the agreement submitted by OPEC + was simply not sufficient. Despite the fact, they are asking for more production i.e 4,00,000 barrels a day on monthly basis amid August and December.
The White House document also states that a rise in gasoline prices is now becoming a major threat for global economy retrieval.
Additionally, OPEC is not only the offender for a higher price. Though, there are several other reasons which have impacted the prices.
They are as follows:
- A dip in the production of oil in U.S.
- Increasing demand of gasoline
- Inflation
- Restricted areas of gasoline supply
- Ethanol prices rise, one of the most important gasoline addictive prepared from corn in U.S.
But still, the response is on wait from OPEC+. Therefore, the Biden government is not in favor to push the OPEC+ and other members to increase production.
Trendy Crude oil Update
Crude oil has support at 4950 and resistance at 5200—5280.
Don’t jump for aggressive buying in Crude oil as trading near to its resistance.
We recommend our subscribers to go sell on the rise around 5150—5200 with a stop loss above 5280 on a closing basis for the downside target of 4950.
Trendy Natural Gas Update
More and more downside panic we will see on a weekly close below 4950 levels.
Natural Gas has support at 294—286 and resistance at 313
Fresh buying we will do on a close above 313 levels only or else it could test its support level of 294—286 and then to 278 levels in days to come
Traders can sell Natural Gas on the rise around 305 with a stop loss above 313 on a closing basis for the downside target of 296—284—278.