WTI Oil Dives Below $85 On Recession Worries

Key Insights

• WTI oil gained strong downside momentum. 
• The strong pullback in natural gas markets continues. 
• Precious metals rebound as U.S. dollar retreats from recent highs. 

WTI Oil Settled Below The Key Support Level

WTI oil remains under significant pressure as traders are worried about the strength of demand in the remaining months of the year.

From a technical point of view, WTI oil has just managed to settle below an important support level. Not surprisingly, WTI oil developed material downside momentum and is moving towards the $83 level. The downside trend remains intact, and oil markets may continue to move lower amid recession worries.

Natural Gas Remains Under Strong Pressure

Natural gas prices are trying to settle below the $8.00 level as the sell-off continues. In Europe, natural gas markets are also moving lower as demand is falling due to closure of factories, moderate weather, and energy-saving measures.

Tomorrow, natural gas traders will have a chance to take a look at the latest data from EIA, which may have a significant impact on market dynamics. Natural gas has already pulled back by more than 20% from the recent highs, and it will need material catalysts to continue the current pullback.

Gold Tries To Rebound As Treasury Yields Decline

Gold  moved back above the $1700 level as Treasury yields declined. The U.S. dollar pulled back after testing new highs, which was also bullish for gold.

Other precious metals are also gaining ground today. Silver gained strong upside momentum and moved towards $18.30. Platinum climbed towards the $850 level, while palladium moved closer to the $2000 level.

It remains to be seen whether the current rebound will be sustainable as it depends on the continuation of the pullback in U.S. dollar and Treasury yields.

Copper Is Moving Towards The $3.40 Level

Copper failed to settle above $3.50 and pulled back to $3.43 amid recession worries. The current pullback is not strong, but copper traders are worried that demand will be weak in the upcoming months.

In case copper manages to settle below $3.40, it will gain additional downside momentum and move towards the next support level at $3.25.

For a look at all of today’s economic events, check out our economic calendar.