Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.

Trading positions 

• Natural Gas [NGJ22]
  Long around the $4.490-4.550 support area (yellow band) with a stop at $4.340 and targets at $4.745 & $4.860 – More details in previous Oil Trading Alert.
• RBOB Gasoline [RBJ22]
  No new position justified on a risk/reward point of view.
• WTI Crude Oil [CLJ22]
  No new position justified on a risk/reward point of view.
• Brent Crude Oil [BRNK22]
  No new position justified on a risk/reward point of view.

Henry Hub Natural Gas (NGJ22) Futures (April contract, daily chart)

As it was detailed in Friday’s Oil Trading Alert, NYMEX natural gas offered several entry options for various profiles of traders. The support provided even served to trigger a new rebound today, as you can see on the above chart.

Regarding risk management, it is always best to define your strategy according to your own risk profile. For some guidance on trade management, read one of my articles on that topic.

Crude oil prices are slipping from their recent highest levels. Where could we see the next support located?

Oil prices fell sharply on Monday – extending last week’s decline – driven by potential progress in Ukraine-Russia talks.

India is considering taking advantage of Russia's discounted crude oil and other commodities offers by settling transactions through the rupee/ruble payment system. Meanwhile, on the eastern side, there is a rush to replace the Russian barrels in the west, but immediate availability is limited.

In addition, some fears that OPEC+ countries might not be able to easily increase supply remain, even though the UAE said last week that OPEC+ could double the output to the market (about 800,000 bpd) very quickly. However, this sounds very challenging since OPEC+ countries have already struggled to bring in 400,000 bbd.

On the Asian side, a slowdown in demand could have been seen as 17 million residents in Shenzhen, the technological centre of southern China, were locked down on Sunday after reports of epidemic outbreaks linked to the neighbouring territory of Hong Kong, where the Omicron strain seems to have spread. There are growing fears that other cities could follow suit to comply with the country's strict zero-COVID policy, adopted by the government of the People's Republic of China.

WTI Crude Oil (CLJ22) Futures (April contract, daily chart)

That’s all folks for today – happy trading!

As always, we’ll keep you, our subscribers well informed.

Thank you.

Sebastien Bischeri
Oil & Gas Trading Strategist