Key Insights
- WTI oil continues to rebound amid worries that OPEC+ will cut production instead of boosting output.
- Natural gas is testing the resistance at $6.75 as traders stay focused on rail strike risks.
- Copper gained upside momentum after a lengthy pullback.
WTI Oil Climbed Above The $81 Level As The Rebound Continued
WTI oil moved above the $81 level as traders worried that OPEC+ may cut production at the next meeting on December 4. Yesterday, oil markets found themselves under pressure amid reports that OPEC+ may increase production by 500,000 bpd ahead of the Russian oil price cap.
The market sentiment shifted quickly, and oil is gaining ground as traders fear that a production cut may be coming. Interestingly, the market ignores the problems with coronavirus in China.
At tis point, it looks that WTI oil has sufficient support near the $75 level, and the oil market will need significant catalysts to settle below this level.
Natural Gas Tests Resistance At $6.75
Natural gas continues its attempts to settle above the resistance at $6.75 as traders prepare for the potential rail strike.
The weather forecast has recently changed, and warmer weather is expected. The natural gas demand should be moderate, but the strike risk is sufficient enough to push natural gas prices towards the $6.75 level. A move above this level will open the way to the test of the resistance at $6.90.
Gold Gains Ground As Dollar Is Under Pressure
Gold has recently made an attempt to settle above the $1750 level as Treasury yields declined. Weaker dollar served as an additional bullish catalyst for gold and other precious metals.
Copper Rebounds After The Strong Pullback
Copper moved back above the $3.60 level as some traders were ready to bet on a rebound after a lengthy pullback.
Problems with coronavirus in China remain the key risk for copper markets in the near term as China is the world’s main consumer of copper.
If China introduces additional curbs, copper markets will find themselves under pressure, and copper prices may settle below the $3.50 level.
For a look at all of today’s economic events, check out our economic calendar.
