WTI Oil Rebounds Above The $73 Level

Key Insights

• WTI oil gains ground at the start of the week. 
• Natural gas rallies as traders bet on colder weather. 
• Gold pulls back as traders cut risks ahead of U.S. CPI data and Fed Interest Rate Decision.

WTI Oil Rebounds As Traders Focus On Keystone Pipeline Outage

WTI oil rebounds after the strong pullback, which was triggered by recession worries. Problems with the Keystone pipeline served as a bullish catalyst for the oil market, although it looks that profit-taking after the strong move was the main driver behind today’s pullback.

The nearest resistance level for WTI oil is located at $73.65. If WTI oil manages to climb above this level, it will move towards the next resistance at $75.30. A successful test of the resistance at $75.30 will push WTI oil towards the resistance at $76.30.

On the support side, the nearest support level for WTI oil is located at the $73 level. If WTI oil declines below $73, it will move towards the next support at $72.30.

Natural Gas Rallies As Colder Weather Will Boost Demand

Natural gas  is trading near the $6.80 level as traders focus on colder weather forecasts. The markets expects that the weather will be colder than usual across most of the U.S.

In Europe, EU countries discuss the potential natural gas price cap. At this point, this initiative will have no impact on the U.S. markets, although traders will still monitor EU’s efforts to control prices.

Gold Pulls Back Ahead Of U.S. CPI Reports

Gold  failed to settle above the $1800 level and pulled back towards the nearest support at $1785. The U.S. dollar is mostly flat today, and it looks that gold traders are not ready to increase their bets on gold ahead of the U.S. CPI data, which will be released tomorrow.

Other precious metals are also moving lower in today’s trading session. Silver pulled back towards $23.25. Platinum moved closer to the $1000 level, while palladium settled below $1900.

Copper Retreats As Traders Are Nervous Ahead Of The Fed Decision

Copper markets pulled back towards the $3.80 level as traders failed to find additional positive catalysts that could have pushed the price towards the $4.00 level. Most likely, the market will be waiting for the Fed Interest Rate Decision, which will be released on Wednesday.

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