WTI Oil Retreats Below The $84 Level

Key Insights

• WTI oil is losing ground as the U.S. will sell more oil from SPR. 
• Gold is under pressure as Treasury yields test new highs. 
• Copper remains stuck near the $3.50 level. 

WTI Oil Remains Under Pressure

WTI oil settled below the $85 level amid concerns about sales from the U.S. Strategic Petroleum Reserve. The U.S. has recently announced that it would sell up to 10 million barrels for delivery in November.

The sales from the SPR served as a material bearish catalyst for oil markets in recent months. Currently, oil markets remain bearish as strong dollar and recession fears put additional pressure.

WTI oil is trying to settle below the support at $83.50. In case this attempt is successful, WTI oil will move towards the next support level, which is located near $82.50. A move below this level will push WTI oil towards yearly lows near $81.50.

On the upside, WTI oil needs to get back above the $85 level to have a chance to gain upside momentum in the near term. The next resistance level is located at $86.50. A successful test of this level will open the way to the test of the resistance at the 20 EMA at $87.80.

Natural Gas Tries To Settle Back Above $8.00

Natural gas is trying to settle above the $8.00 level as the rebound continues. In Europe, natural gas markets have also moved higher after a strong sell-off.

At this point, it looks that U.S. natural gas markets will try to stabilize near the $8.00 level, which served as the bottom after the previous pullback.

Strong Dollar And Higher Treasury Yields Put Pressure On Gold

Gold moved closer to yearly lows as Treasury yields tested new highs. The recent dynamics of Treasury markets have put significant pressure on gold markets as gold pays no interest.

Silver and palladium have also found themselves under material pressure today. Silver declined towards the $19.20 level, while palladium pulled back below $2150.

Interestingly, platinum managed to stay above the $920 level as its strong rebound continued.

Copper Markets Wait For More Catalysts

Copper markets continue to trade near the $3.50 level. Stronger dollar, recession worries and rising Treasury yields did not put material pressure on copper in recent trading sessions.

Most likely, copper traders are waiting for the Fed Interest Rate Decision, and there will be no strong moves in copper markets until Wednesday.

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