WTI Oil Faced Strong Resistance Near The $80 Level

Key Insights

• WTI oil tried to rebound but lost momentum and pulled back. 
• Natural gas traders wait for additional catalysts. 
• Copper remains stuck in the $3.60 – $3.65 range. 

WTI Oil Declined Below $78

WTI oil made an attempt to settle above the $80 level but lost momentum and pulled back below $78. Traders continue to wait for the news on the Russian oil price cap scheme. Yesterday, negotiations were postponed as Poland insisted on a $30 level, while other countries wanted to set the cap above the $65 level.

In case WTI oil settles below the $78 level, it will move towards the support at $77.25. A successful test of this level will open the way to the test of the support at $76.75. In case WTI oil declines below $76.75, it will head towards the next support level at $76.30.

On the upside, WTI oil needs to settle back above $78 to have a chance to gain upside momentum in the near term. The next resistance level for WTI oil is located at $79.15. A move above $79.15 will push WTI oil towards the resistance at $80.00.

Natural Gas Is Mostly Flat

Natural gas markets are mostly flat as traders wait for additional catalysts. Trading activity will be low today as many traders have left for a long weekend and will get back to work on Monday.

In Europe, prices have started to move higher as traders expect that weather will become colder in early December. It remains to be seen whether the developments in the European markets will have any material impact on the U.S. markets in the near term as the restart of Freeport LNG has been delayed.

Gold Retreats As Dollar Rebounds

Gold pulled back towards the $1750 level as the U.S. dollar rebounded against a broad basket of currencies. Treasury yields moved higher, which was also bearish for gold.

Other precious metals have also found themselves under pressure in today’s trading session. Silver settled back below the $21.50 level. Platinum declined below $1000, while palladium moved towards the $1800 level.

Copper Needs Additional Catalysts To Move Higher

Copper  has recently made another attempt to settle above the $3.65 level but lost momentum and pulled back towards $3.62. Strict anti-coronavirus measures in China continue to serve as a significant negative catalyst for copper markets.

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