WTI Oil Rallied Towards The $86 Level

Key Insights

• WTI oil managed to gain strong upside momentum after the recent pullback. 
• Natural gas stays near the $8.00 level as traders wait for additional catalysts. 
• Precious metals rebound as U.S. dollar tests yearly lows. 

WTI Oil Rallies Ahead Of The Weekend

WTI oil moved back above the $86 level amid a broad rebound in commodity markets. The recent EIA report was bearish, but traders were still ready to buy oil after the strong pullback.

The market remains nervous as traders balance between recession worries and potential supply problems.

WTI oil found strong support near the $82 level and moved towards the significant resistance near the $86 level. It remains to be seen whether WTI oil will be able to gain additional upside momentum ahead of the weekend. In case WTI oil manages to settle back above $86, it will have a good chance to move towards the 20 EMA near $89.50.

Natural Gas Remains Stuck Near $8.00

Natural gas continues to trade near the $8.00 as traders wait for additional catalysts.

In Europe, natural gas markets are trying to stabilize after the strong pullback. European countries failed to reach consensus on the potential price cap for Russian gas, which could have completely destabilized global natural gas markets.

In the U.S., natural gas consumption is expected to be moderate due to cooler weather, and it remains to be seen whether it will be sufficient enough to hold natural gas prices near the $8.00 level next week.

Precious Metals Rebound As U.S. Dollar Moves Lower

The strong pullback in the U.S. dollar provided material support to precious metals.

Gold has recently made another attempt to settle above the 20 EMA at the $1700 level but failed to develop sufficient upside momentum and pulled back towards $1715.

Silver moved closer to the $19 level, supported by growing appetite for risk. Platinum tested the 50 EMA near $880, while palladium settled near the $2150 level.

Copper Tested Resistance At $3.60

Copper made an attempt to settle above the 50 EMA near $3.60 but lost momentum and pulled back towards $3.55.

Copper markets will remain sensitive to economic outlook, and it remains to be seen whether copper will be able to gain sustainable upside momentum at a time when global central banks are raising rates aggressively.

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