Situation on the energy markets is mixed at the beginning of a new week. While Brent and WTI are trading around 1% higher, natural gas prices take a dive. NATGAS launched today’s trading with a big bearish price gap and reached the lowest level since late-September. Reasons behind today’s over-4% drop are vague. On one hand, the drop may be fueled by weekend’s comments from Russia’s Deputy Prime Minister Novak. Novak said that Russia is ready to boost natural gas supply to Europe in order to stabilize the market. This is not the first time such an announcement is made by Russian politicians and what happens next will be determined by politics. Another reason that may justify today’s drop are weather forecasts for the United States. The next two weeks are expected not to be as cool as previously thought. Somewhat cooler weather is expected in the US next week. Nevertheless, weather forecasts continue to point to a rather harsh winter ahead.
NATGAS launched today’s trading over 4% below Friday’s close. A support was found at 78.6% retracement of the upward impulse started September 21, 2021. A key zone to watch in the near-term is the $5.20 area, marking last week’s lows. Next resistance levels to watch in case of a break higher can be found near 61.8, 50 and 38.2% retracements. On the other hand, if bulls fail to regain control over the market, a drop towards a short-term, psychological support at $5.00 may be on the cards.