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- Daily Energy Market Update August 10, 2026
Energy markets are trading higher this morning as geopolitical risks and continued concerns over refined product supplies provide support. Crude is also finding support from signs of a recovery in Chinese buying activity, although demand remains below prior-year levels. Traders will continue to watch for further evidence that Chinese demand is strengthening.
The Strait of Hormuz remains a key focus for the oil market, with shipping activity still below normal levels. Any meaningful improvement in traffic through the waterway would help ease supply concerns, while continued disruptions would keep uncertainty elevated.
Diesel remains a key area of tightness, with concerns that the market could become more strained as the Northern Hemisphere winter approaches. Ongoing geopolitical disruptions and the potential for stronger seasonal demand are keeping refined products firmly in focus.
For now, the market remains caught between improving demand expectations and continued geopolitical uncertainty. Traders will be watching developments around the Strait of Hormuz, Chinese buying activity and refined product markets for signs of whether the recent strength in energy prices can continue.
Crude (CL1)
Crude is up 1.07 at 79.25 (6:40 AM). Price remains contained between the 50-day and 200-day moving averages for the second consecutive session. The 50-day moving average is at 80.28, while the 200-day moving average comes in at 76.65. The two moving averages have been converging, increasing the risk of a potential death cross if the 50-day moving average eventually moves below the 200-day.
Momentum has moved back toward neutral territory but continues to point lower, suggesting upside momentum remains limited. Price will need to reclaim the 50-day moving average to improve the near-term technical outlook. A break below the 200-day moving average would increase the risk of another move lower and bring the 73.29 lower Bollinger Band into focus.
Key Levels
Resistance
• 80.28 – 50-day moving average
• 81.87 – 20-day moving average
• 89.31 – 100-day moving average
Support
• 76.65 – 200-day moving average
• 73.29 – Lower Bollinger Band
• 67.04 – July 2 reversal bar low
Crude (CL1)
Heating Oil (HOU6)
Heating oil is up this morning, trading at 4.0224 (7:04 AM). Price has broken above the short-term resistance at 3.9864, the 20-day moving average that had capped price during the previous four trading sessions. A close above 3.9864 could lead to follow-through buying.
Momentum has moved out of overbought territory but has not yet returned to the neutral zone, suggesting further upside may be limited.
Key Levels
Resistance
• 4.2439 – Upper Bollinger Band
• 4.2888 – High from July 23
Support
• 3.9862 – 20-day moving average
• 3.7286 – Lower Bollinger Band
• 3.5900 – 50-day moving average
Heating Oil (HOU6)
Crude Spread (CLZ6/CLZ7)
The crude spread is up 0.33 at 6.65 (7:47 AM) in overnight trading. The 20-day moving average has also been acting as short-term resistance. Today marks the third consecutive session with higher lows and higher highs, indicating continued near-term strength.
Momentum has returned to neutral territory but continues to point lower, suggesting upside momentum remains limited.
Key Levels
Resistance
• 8.14 – Bearish engulfing bar high from July 31
• 9.10 – Upper Bollinger Band
• 9.57 – Highest high since the early July low
Support
• 5.94 – 100-day moving average
• 5.36 – 50-day moving average
• 4.30 – Lower Bollinger Band
Crude Spread (CLZ6/CLZ7)
Natural Gas Market Overview
Natural Gas (NGU26)
Natural gas gapped higher overnight and is currently up 0.11 at 2.770. Price continues to trade bid near the overnight high. The 20-day moving average should act as a key pivot level. After price crossed below the 20-day moving average at the beginning of July, it has not traded back above it.
Momentum remains very oversold, but today's price action has caused momentum to cross higher, suggesting selling pressure may be beginning to ease.
Key Levels
Resistance
• 2.788 – 20-day moving average
• 2.958 – Upper Bollinger Band
• 3.009 – 50-day moving average
Support
• 2.619 – Lower Bollinger Band
• 2.616 – Double bottom
Natural Gas (NGU26)
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Disclaimer
This article and its contents are provided for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any commodity, futures contract, option contract, or other transaction. Although any statements of fact have been obtained from and are based on sources that the Firm believes to be reliable, we do not guarantee their accuracy, and any such information may be incomplete or condensed.
Commodity trading involves risks, and you should fully understand those risks prior to trading. Liquidity Energy LLC and its affiliates assume no liability for the use of any information contained herein. Neither the information nor any opinion expressed shall be construed as an offer to buy or sell any futures or options on futures contracts. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy. Any opinions expressed herein are subject to change without notice, are that of the individual, and not necessarily the opinion of Liquidity Energy LLC
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