Oil prices edged higher for the second consecutive day, fueled by optimism for increased demand in the United States, the leading global oil consumer, amid refinery restarts after outages and a weakening dollar.
Market strategist Yeap Jun Rong highlighted oil’s resilience, suggesting a potential retest of year-to-date highs, supported by geopolitical tensions. However, an unexpected rise in U.S. crude stocks could temper gains, awaiting further cues from upcoming Energy Information Administration inventory data.
Significant refinery outages have contributed to increased crude inventories, though recovery efforts are underway, with major refineries like BP’s in Indiana and Total Energies’ in Texas poised for full production resumption.
The weaker dollar also played a role in bolstering crude prices, making oil more affordable internationally.
On February 22, Natural Gas (NG) experienced a slight decline of 0.70%, settling at $1.8480. The commodity currently trades just above its pivot point of $1.8450, hinting at a cautiously optimistic outlook. Key resistance levels are identified at $1.9044, $1.9920, and $2.0839, which could cap upward movements.
Conversely, support levels are found at $1.7193, $1.6117, and $1.5002, offering potential rebound points. The 50-day Exponential Moving Average (EMA) at $1.7545 and the 200-day EMA at $2.0764 indicate a mixed sentiment.
Given this, the trend for NG is bullish above the pivot point of $1.8450, suggesting that prices may incline if they remain above this critical threshold.
Arslan, a webinar speaker and derivatives analyst, has an MBA in Finance and MPhil in Behavioral Finance. He guides financial analysis, trading, and cryptocurrency forecasting. Expert in trading psychology and sentiment.