Since the beginning of the year, oil prices have been in a bearish trend. In the last 48 hours, oil prices have fallen by $6.00, and we are now at the $75.00 level. The increase in covid cases in China and the introduction of quarantine for travelers from China traveling to European countries affected the demand for travel and, therefore, for oil. Now we could expect to see a continuation of the further decline in oil prices. Potential lower targets are the $74.00 and $73.00 levels. For a bullish option, we need a positive consolidation to stop the current oil price decline. Next, we must move above the $76.00 level and try to hold above. With the next bullish impulse, we could continue the recovery, and the potential higher targets are the $77.00 and $78.00 levels.
The gas price falls to a ten-month low at the $4.00 level. We are currently seeing a consolidation that is managing to keep gas prices around the $4.00 level for now. Pressure on the price could lead to continuing the bearish trend and forming new lower lows. Potential lower targets are the $3.80 and $3.60 levels. We need a positive consolidation and a move above the $4.20 level for a bullish option. If we manage to move above and stay up, the price could continue further recovery with a new bullish impulse. Potential higher targets are the $4.40 and $4.60 levels.
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