WTI Oil Retreats As Domestic Oil Production Grows

Key Insights

• WTI oil is losing ground after the release of the EIA report. 
• Natural gas made an attempt to rebound but traders failed to find sufficient upside catalysts. 
• Precious metals are moving higher as Treasury yields decline. 

WTI Oil Remains Under Strong Pressure

WTI oil moved lower after the release of the EIA Weekly Petroleum Status Report. The report indicated that crude inventories declined by 5.2 million barrels from the previous week. Analysts expected that crude inventories would decline by 3.3 million barrels.

Total motor gasoline inventories increased by 5.3 million barrels, while distillate fuel inventories grew by 6.2 million barrels. The growth of total motor gasoline and distillate fuel inventories served as material negative catalysts for WTI oil.

In addition, domestic oil production increased from 12.1 million bpd to 12.2 million bpd despite the recent pullback in oil markets.

Currently, WTI oil is trying to settle below the support at $73.65. In case this attempt is successful, WTI oil will move towards the next support level, which is located at $73.00. A move below this level will open the way to the test of the support at $72.30.

On the upside, the nearest material resistance level for WTI oil is located at $75.30. If WTI oil climbs back above this level, it will move towards the next resistance at $76.30.

Natural Gas Faced Strong Resistance Near $5.70

Natural gas made an attempt to settle above the $5.70 level but lost momentum and pulled back towards $5.50.

The initial rebound was triggered by profit-taking after the major pullback in natural gas markets. However, it looks that traders cannot find material upside catalysts for natural gas. The rail strike was averted, and the weather forecast remains unfavorable for high natural gas consumption.

Gold Rebounds As Treasury Yields Move Lower

Gold tested resistance at $1785 as U.S. dollar found itself under pressure against a broad basket of currencies. Lower Treasury yields served as an additional bullish catalyst for gold markets.

Other precious metals are also moving higher. Silver managed to get back above the $22.50 level. Platinum made an attempt to settle above $1025, while palladium tested the $1850 level.

Copper Tries To Climb Above The $3.85 Level

Copper  continues its attempts to settle above the $3.85 level as traders bet on rising demand from China. In case copper manages to settle above this level, it will head towards November highs at $3.96.

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