WTI Oil Dives Towards $82.50 As Traders Prepare For SPR Sales

Key Insights

• The U.S. administration is reportedly planning to sell oil from SPR this week. 
• Gold declined as Treasury yields moved closer to yearly highs. 
• Copper prices are moving lower amid worries about the slowdown in China. 

U.S. Administration Plans To Put More Pressure On Oil Prices Ahead Of Elections

WTI oil declined from $85 to $82.50 as the U.S. administration is reportedly planning to sell oil from the Strategic Petroleum Reserve to push prices lower ahead of elections in November.

It should be noted that the slowdown in China continues to serve as an important negative catalyst for oil markets. In combination with the sales from the SPR, problems in China may push WTI oil below the $80 level.

Natural Gas Remains Under Strong Pressure Amid Lack Of Positive Catalysts

Natural gas prices managed to settle below the $6.00 level and are moving towards the next support at $5.70. The absence of material positive catalysts is the main driver behind the move.

RSI remains in the moderate territory, and there is enough room to gain additional downside momentum in the upcoming trading sessions. In case natural gas settles below $5.70, it will move towards the next support level at $5.35. A successful test of this level will open the way to the test of the support at $5.10.

On the upside, the previous support at $6.00 will serve as the first resistance level for natural gas. In case natural gas climbs back above this level, it will move towards the next resistance, which is located at $6.30. A move above $6.30 will push natural gas towards the resistance at $6.55.

Gold Pulls Back As Treasury Yields Rebound

Gold failed to settle above the $1660 level and moved closer towards the nearest support at $1640 as the yield of 10-year Treasuries settled back above the 4.00% level. Meanwhile, the U.S. dollar gained some ground against a broad basket of currencies, putting additional pressure on gold and other precious metals.

Silver moved towards the support at $18.50, while platinum declined towards the $910 level. Palladium received support near $1980 and moved back above the $2000 level as some traders were willing to bet on a rebound after the recent sell-off.

Copper Moved Out Of The Recent Trading Range

Copper has finally managed to settle below the $3.40 level and gained additional downside momentum. Currently, copper price is trying to settle below $3.35.

It looks that worries about the economic slowdown in China have finally put material pressure on copper markets. In case copper traders stay focused on recession risks, copper will get to the test of September lows near the $3.25 level.

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