• After the price of oil reached its minimum at $ 101.50, the price recovery in the previous period began.
• As we expected, the price of natural gas dropped to $ 6.00 before the start of the European session.
• Russia earns more than $ 100 million a day from gas exports to Europe.
   

Oil chart analysis

After the price of oil reached its minimum at $ 101.50, the price recovery in the previous period began. The price formed a new higher low yesterday. Today it did the same with the new higher low, and we are now at $ 105.80. We will soon test the resistance at $ 106.00, and if we make a break above that, it would be a good sign that the price does not have the strength to continue on the bullish side. The following first target above $ 106.00 is the $ 108.00 price, and we are halfway there to the $ 110.00 resistance zone. For the bearish option, we need a new negative consolidation and a pullback to the $ 104.00 support zone. If the pressure on that level increases, we can see a break below and a new drop to the $ 102.00 level.

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Natural gas chart analysis

As we expected, the price of natural gas dropped to $ 6.00 before the start of the European session. After that, we have a smaller recovery to $ 6.20. If the price moves as the previous template, we could expect a recovery up to the $ 7.00 level. We need a positive consolidation above $ 6.40 to try to go back above $ 6.60 and find the following support there. If we succeed, we will continue up to the $ 7.00 price. The additional resistance then at that level is the MA200 moving average. We need continued negative consolidation and new testing of the $ 6.00 level for the bearish option. The price break below opens us up to these lower support levels. And potential support targets are $ 5.80 and $ 5.60.

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Market overview

Russia earns more than $ 100 million a day from gas exports to Europe. Russia’s gas export revenues are believed to equal last year’s revenues. Last week, Moscow decided to reduce deliveries to large customers in Germany and Italy. Due to rising natural gas prices, it is believed that Russia’s revenues from gas exports are equal to those of last year when Moscow did not restrict gas flows to Europe and when it was not yet on the path of collision with the EU. Russia has significantly cut supplies to large European consumers over the past week, including its largest customers, Germany and Italy, despite the fact that their customers have complied with Putin’s demand to open ruble accounts with Gazprombank. The annual maintenance of the North Stream is imminent. It will completely stop the deliveries through the gas pipeline for two weeks in July, leaving Europe to continue to struggle to fill the gas storage facilities to an adequate level before the winter.