WTI Oil Tests Support At $85 After EIA Report

Key Insights

• WTI oil continues to move lower after the release of the EIA report. 
• Natural gas declined towards the low end of the current trading range. 
• Gold is trying to get above the resistance at $1785 as Treasury yields pull back. 

WTI Oil Is Trying To Settle Back Below $85

WTI oil is trading near the $85 level after the release of the EIA Weekly Petroleum Status Report, which indicated that crude inventories declined by 5.4 million barrels from the previous week. Analysts expected that crude inventories would decrease by 0.4 million barrels.

The surprising decline in crude inventories was caused by the significant decline in U.S. crude oil imports.

Total motor gasoline inventories increased by 2.2 million barrels, while distillate fuel inventories grew by 1.1 million barrels. Domestic oil production remained unchanged at 12.1 million bpd.

From a big picture point of view, WTI oil continues its attempts to settle below the $85 level. A successful test of this level may push WTI oil towards the next significant support level at $83.15.

Natural Gas Tested Support At $5.75

Natural gas faced resistance at $6.20 and pulled back towards the $5.75 level. Natural gas prices have been stuck in the $5.75 – $6.40 range in recent trading sessions, and the market needs additional catalysts to get out of this trading range.

Freeport LNG uncertainty remains a bearish catalyst for the market, which is offset by colder weather.

Gold Tests Resistance At $1785

Gold  continues its attempts to settle above the resistance level at $1785 as U.S. dollar pulls back against a broad basket of currencies. Lower Treasury yields also serve as a bullish catalyst for gold markets.

Silver has recently made another attempt to settle above the $22.00 level but lost momentum and pulled back towards $21.50. The resistance at $22.00 has been tested many times in recent trading sessions and proved its strength.

Meanwhile, platinum pulled back towards the $1020 level, while palladium declined towards $2070.

Copper Retreats As The Market Needs Additional Positive Catalysts

Copper markets remain under pressure as traders fail to find additional positive catalysts that could push copper back to the $4.00 level.

Currently, copper is trying to settle below $3.75. In case this attempt is successful, copper will move towards the next significant support level at $3.70.

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