WTI Oil Settled Below $75 On Recession Worries

Key Insights

• WTI oil remains under pressure as traders focus on the risk of global recession. 
• Copper gains some ground as the market prepares for the potential relaxation of China’s zero-COVID policy. 
• Natural gas is losing ground as weather remains unfavorable for high natural gas consumption. 

WTI Oil Retreats As Sell-Off Continues

WTI oil moved below the $75 level as traders focused on the global recession risks.

Interestingly, the Russian oil price cap and the recent developments in China, which may relax its zero-COVID policy, failed to provide any support to oil markets.

WTI oil managed to get below the $75 level and is trying to gain additional downside momentum. The nearest support level for WTI oil is located at $73.65. In case WTI oil declines below this level, it will head towards the next support at $73.00.

On the upside, the previous support at $75.30 will serve as the first resistance level for WTI oil. If WTI oil manages to climb above this level, it will head towards the next resistance at $76.30. A successful test of this level will open the way to the test of the resistance at $76.75.

Natural Gas Remains Under Strong Pressure

Natural gas declined towards the $5.45 level as the sell-off continued. The weather forecast remains unfavorable for high natural gas consumption, and traders cannot find any upside catalysts for the market.

The nearest support level for natural gas is located at $5.35. In case natural gas declines below this level, it will head towards the next support level at $5.00.

Gold Tries To Get Back Above $1775

Gold  made an attempt to settle back above the $1775 level but lost momentum and moved back into the $1765 – $1775 range.

Meanwhile, silver continued its attempts to settle below the support at $22.15 after an unsuccessful attempt to climb above $22.50. In case the U.S. dollar continues to rebound, silver will find itself under more pressure.

Other precious metals have been moving lower. Platinum pulled back towards the $1000 level, while palladium declined below $1850.

Copper Tried To Climb Above The $3.85 Level

Recession worries failed to put any pressure on copper markets. Copper has recently made another attempt to settle above the $3.85 level. Copper traders remain focused on the situation in China, which is the world’s main consumer of copper. China is expected to relax its zero-COVID policy on Wednesday, which serves as the key bullish catalyst for copper markets.

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