WTI Oil Pulls Back Amid Recession Worries

Key Insights

• Recession fears put significant pressure on commodity markets today. 
• The hawkish Fed rate projections caused a sell-off in precious metals markets. 
• Copper moved back below the $3.80 level. 

WTI Oil Declined Below The $76 Level

WTI oil pulled back towards the $75.50 level as traders focused on recession worries.

Yesterday’s Fed projections indicated that the central bank would likely push rates above the 5% level, putting additional pressure on the economy.

The nearest support level for WTI oil is located at $75.30. If WTI oil declines below this level, it will move towards the next support at $73.65. A successful test of this level will push WTI oil towards the support at $72.90.

On the upside, the nearest resistance for WTI oil is located at $76.30. If WTI oil climbs back above this level, it will head towards the next resistance at the 20 EMA at $77.50. A move above the 20 EMA will open the way to the test of the resistance at $78.40.

Natural Gas Markets Stay Choppy

Natural gas is trading near the $6.60 level as the market stays choppy. The recent EIA report showed that working gas in storage declined by 50 Bcf from the previous week, compared to analyst consensus of -45 Bcf.

It remains to be seen whether this report will provide additional support to the market as traders stay focused on the changes in weather forecasts.

Gold Tests Support At $1775 As Traders Focus On Fed Rate Projections

Gold declined towards the $1775 level as traders focused on the hawkish Fed projections, which indicated that the Fed may push rates above the 5% level in 2023. Interestingly, Treasury yields moved lower today, but gold traders ignored this move.

Other precious metals are under strong pressure in today’s trading session. Silver pulled back towards the $23.00 level. Platinum is currently trying to settle below the 20 EMA at $1020, while palladium is trading near $1815.

Copper Tests Support At The 20 EMA

Copper pulled back towards the 20 EMA at $3.77 amid recession worries. The recent attempts to settle above $3.90 were not successful, and it looks that some traders decided to take profits off the table amid a strong sell-off in global commodity markets.

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