Gas and Oil Are at Record Highs. Can You Still Buy?

Gas and Oil Are at Record Highs. Can You Still Buy?

2022-12-01 • Updated

What is happening with gas?

Analysts of HSBC revealed their outlook on energy prices. They expected the gas price to be “exceptionally high” this winter because a global shortage pushed some energy firms to close. Supply is going to be weak, while demand will rise sharply in the winter season, pushing gas prices even higher. According to Bloomberg, ‘European gas prices surged by almost 500% in the past year and are trading near record’. The high energy prices in turn forced producers in Europe to decrease production, which can lead to higher costs for farmers and potentially add to global food inflation.

1.png

Source: Bloomberg

What is happening with oil?

A combo of strong demand and poor supply has sent oil prices to the high unseen since 2018. This winter is going to be good for oil suppliers but not for its consumers, who are switching from gas to cheaper oil. Vitol Group, the world’s largest oil trader, anticipates oil demand to rise by half a million barrels a day this winter. It will support oil prices.

Why is it important for traders?

There are oil and gas trading instruments that are becoming more popular among traders: XBR/USD (Brent oil), XTI/USD (WTI oil), and XNG/USD (gas).

Tech outlook

Just look at the XBR/USD. It has opened today with a gap up, getting closer to the psychological level of $80.00 a barrel. The jump above this mark will open the doors towards the three-year high of $84.00. Support levels are $75.00 and $70.00.

XBRUSDWeekly.png

XTI/USD tends to move together with XBR/USD, but it has outrun its peer. It has already approached the three-year high, which is at $75.00. WE might expect a short pullback before oil prices will continue rallying up. When oil closes above $75.00, it may surge to $80.00. Support levels are $70.00 and $65.00.

XTIUSDWeekly.png

A cup and handle pattern has almost occurred on the XNG/USD chart. If gas breaks out the mid-September high of $5.50, it may rocket to 5.70! Support levels are at the 50 and 100-period moving averages: $5.15 and $5.00.

XNGUSDH4.png

TRADE NOW

Similar

Oil In The Geopolitical Lens: Soars And Dips Under The Influence Of Global Events
Oil In The Geopolitical Lens: Soars And Dips Under The Influence Of Global Events

Amid uncertainty driven by geopolitical events, oil prices surged to record highs. However, a correction in oil prices is observed with a gradual improvement in the situation in the Middle East and an increase in demand. The question facing investors is whether there are prerequisites for further price growth or if everything depends on the dynamics of the political landscape. In this article, we will explore the impact of recent events on the global oil market and the prospects for developing this crucial commodity sector.

OPEC Boosts The Oil Market
OPEC Boosts The Oil Market

Brent crude futures is maintaining stability this Friday, with traders awaiting an OPEC+ meeting that might lead to further supply cuts. Brent crude was down 8 cents at $81.34 a barrel, following a 0.7% drop in the previous session.

Latest news

WTI and Brent React To a Key Pivot
WTI and Brent React To a Key Pivot

Brent oil is currently on a bullish trend, facing resistance near $84 and supported by the 200-day EMA. Breaking above this level could lead to a climb towards $90. Short-term support is observed around $80, backed by the 50-day EMA. As summer approaches and travel increases, crude oil tends to benefit from seasonal patterns. Despite temporary setbacks, buying...

XAUUSD: Will Gold Continue to Rally?
XAUUSD: Will Gold Continue to Rally?

Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera