WTI Oil Gains Ground After Testing Yearly Lows

Key Insights

• WTI oil received support near $73.60 and moved towards the $77 level. 
• Gold pulled back below $1750.
• Copper found itself under pressure as traders bet that protests in China would hurt the economy. 

WTI Oil Rebounds As Traders Bet On Aggressive Production Cuts From OPEC+

WTI oil  tested lows near the $73.60 level as traders reacted to the protests in China, which were driven by strict anti-coronavirus measures.

However, oil prices managed to gain upside momentum and moved back towards the $77 level amid rumors that OPEC+ may decide to cut production aggressively at the next meeting on December 4.

Meanwhile, EU countries failed to reach consensus on the Russian oil price cap deal. Negotiations continue, and it remains to be seen whether EU officials will be able to strike a deal before December 5, when the EU embargo on Russian oil would be implemented.

Natural Gas Continues To Trade Above The $7.00 Level

Natural gas  is trading above the $7.00 level as traders wait for additional catalysts. The weather forecast points to moderate natural gas consumption in the near term, but there is no sell-off in natural gas markets.

Some traders continue to exit their positions after the recent rally, but demand for natural gas remains strong. Most likely, the market will need significant catalysts to gain additional momentum and move out of the current trading range.

Silver Retreats As Dollar Rebounds

Silver found itself under strong pressure today and moved below the $21.00 level. The strong rebound of the U.S. dollar served as a bearish catalyst for silver markets.

If silver settles below the $21.00 level, it will get to the test of the next support at $20.80. A successful test of this level will open the way to the test of the support at $20.60. In case silver declines below $20.60, it will head towards the support at $20.40.

On the upside, silver needs to climb back above $21.00 to have a chance to gain upside momentum in the near term. The next resistance level for silver is located at $21.25. If silver moves above this level, it will head towards the resistance at $21.60.

Other precious metals are also moving lower today. Gold pulled back towards the $1745 level, while palladium declined towards $1825. Platinum is trading near the $1000 level.

Copper Is Under Pressure Amid Protests In China

Copper moved below the $3.60 level as traders reacted to the protests in China, which is the world’s main consumer of copper. If China maintains its zero-COVID policy or protests get out of control, its economy will get hurt and demand for copper will drop. The events in China will likely serve as the key catalyst for copper markets in the upcoming days.

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