Crude oil and natural gas prices likely will dip as a result of each commodity not surpassing resistance levels, Bloomberg reports.
Commerzbank said Brent crude oil will fall beneath $90 per barrel for the first time in nearly 60 days since it stutter-stepped at the 200-week moving average. Natural gas has begun a pattern that set it up to dip approximately 5 percent to a new rate of $4.19 per million British thermal units.
"The technical outlook for the energy markets has deteriorated considerably over the past week," according to a January 25 report penned by analyst Karen Anne Jones of London. "We would expect to see corrections lower."
Just last week Brent crude futures stalled at $99 per barrel in anticipation of that 200-week mark.
"The market has recently met its initial target and appears to be struggling," Jones' report stated. "We are not surprised to see profit-taking here. This points to short-term failure. Having failed at the top of the channel, the risk is that we will see a slide to the base of the channel at $4.19."
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