Goldman Sachs says Trump's taxes will rarely change the prices of oil and gas

Natural gas began to advance on Thursday with a rally to an eight-day high of $3.43 before an intraday pullback kicked in. 

Although a minor indication, the $3.39 price level was a peak in January 2024. It was tested again as resistance during the first advance from the recent $2.99 swing low (A) and resistance was seen around the price level.

If natural gas can close above that price today, it will be a slightly more bullish closing than if Thursday’s trading session ends below that level. 

Nonetheless, today’s range of $3.30 to $3.43 provides near term support and resistance, respectively.

Since this week’s price action is contained with a wide range from last week, it would not be surprising to see natural gas continue to slowly advance and fill more of that range. 

Last week’s range goes from a low of $2.99 to a high of $3.83. Last week’s high marks the next higher potential target area above the $3.69 price level.

The new tariffs imposed by U.S. President Donald Trump on imports from Canada, Mexico, and China are likely to have a limited near-term impact on global oil and gas prices, Goldman Sachs said in a note on Sunday.

"Potential tariff-driven decline in U.S. natural gas imports from Canada is too small to significantly raise U.S. natural gas prices," the bank said.

Oil and gas prices jumped on Monday after Trump imposed tariffs over the weekend.