WTI Oil Tests New Lows As Sell-Off Continues

Key Insights

• WTI oil failed to settle back above $80. 
• Gold tested new lows amid rising Treasury yields. 
• Copper moved below the $3.30 level. 

WTI Oil Remains Under Pressure

WTI oil moved back towards the $78 level after an unsuccessful attempt to settle above $80. Traders remain worried about a global recession, which is bearish for oil.

Currently, WTI oil is trying to settle below the $78 level. In case this attempt is successful, WTI oil will move towards the next support, which is located at $75.50. A move below this support level will push WTI oil towards the support at $73. If WTI oil declines below $73, it wil head towards the support level at $71.

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 $81.20. A move above this level will push WTI oil towards the $84 level.

Natural Gas Settled Below The $7.00 Level

Natural gas continues to move lower amid a broad sell-off in commodity markets. In Europe, a group of EU countries is reportedly trying to create a plan for a natural gas price cap, but their chances for success are slim.

Such a price cap would have a significant impact on global markets as it will disrupt supplies, and even the isolated U.S. market will feel this impact.

However, traders do not believe that such plans are realistic, so natural gas markets remain under pressure due to recession worries.

Gold Slips To New Lows As Treasury Yields Test New Highs

Gold declined towards the $1630 level as Treasury yields moved to new highs. Currently, the yield of 2-year Treasuries is trying to settle above the 4.30% level, which is bearish for gold that pays no interest.

Other precious metals are also moving lower. Silver declined towards $18.70. Platinum is trying to settle below $850, while platinum is testing the $2050 level.

Copper Retreats Amid Recession Worries

Copper declined below the $3.30 level as traders focused on recession risks. Today’s action in global government debt markets shows that traders believe that the global economy will find itself under material pressure in the upcoming months.

This environment is bearish for copper, which is sensitive to economic outlook. If copper settles below $3.30, it will move towards yearly lows near $3.15.

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