WTI Oil Pulls Back From Session Highs As OPEC+ May Keep Output At Current Levels

Key Insights

• Recent reports about OPEC+ plans to keep production levels intact put pressure on oil markets. 
• Natural gas is moving higher as traders stay focused on the potential rail strike. 
• Precious metals rebound despite higher Treasury yields. 

WTI Oil Failed To Settle Above The $79 Level

WTI oil  moved back towards the $79 level as fears about Chinese lockdowns eased. It looks that protests in China are under control, which is also bullish for oil markets.

However, oil markets lost momentum after reports indicated that OPEC+ may keep its production policy unchanged at the next meeting.

The nearest support level for WTI oil is located at $77.25. If oil settles back below this level, it will head towards the support at $76.75. A move below $76.75 will push WTI oil towards the support at $76.30.

On the upside, a move above the $78 level will push WTI oil towards the resistance level at $79.15. If WTI oil climbs above this level, it will head towards the psychologically important resistance at $80.

Natural Gas Keeps Moving Higher

Natural gas prices have moved towards the $7.35 level as the potential rail strike continued to provide support to the market.

The weather forecast remains unfavorable for higher natural gas consumption, but traders focus on the potential demand boost from the strike. The timing of the Freeport LNG restart remains uncertain, and the market will be extremely sensitive to any news on this front.

The nearest resistance level for natural gas is located at $7.55. In case natural gas climbs above this level, it will head towards the resistance at $7.80.

Gold Rebounds Despite Higher Treasury Yields

Gold managed to get above the $1750 level despite higher Treasury yields. From a big picture point of view, gold is stuck in the $1740 – $1760 range.

Meanwhile, silver moved back towards the resistance at $21.25. In case silver settles above this level, it will head towards the next resistance level at $21.60.

Platinum made an attempt to settle above the resistance at $1015, while palladium pulled back towards $1825 after an unsuccessful attempt to settle above the $1850 level.

Copper Rebounds As Traders Hope That China Will Gradually Relax Its Strict COVID Rules

Copper rebounded towards the $3.65 level as traders bet that recent protests in China would not put additional pressure on the economy. Copper bulls hope that China will slowly relax its zero-COVID policy, which will provide additional support to copper markets. It remains to be seen whether China is ready for any serious moves on this front in the near term.

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