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- Daily Energy Market Update August 27, 2026
Crude is trading around unchanged this morning after moving lower overnight, with traders continuing to assess whether the latest diplomatic efforts can lead to more normalized flows through the Strait of Hormuz. Brent and WTI have recovered from their overnight lows, but the tone remains cautious as the market waits for evidence that increased traffic through the strait can be sustained.
The main bearish influence remains the potential removal of the geopolitical risk premium. Iran and Oman are discussing arrangements around the strait, while Qatar’s foreign minister is in Tehran today pursuing broader de-escalation efforts. Any progress toward restoring flows would likely keep pressure on crude.
At the same time, the physical market remains tight in important areas, particularly refined products. U.S. distillate inventories remain well below normal seasonal levels, which is helping limit the downside in crude. For now, the market looks more range-bound than decisively bearish, with traders balancing improving geopolitical expectations against still-tight fundamentals.
Crude (CL1)
Crude is having an inside day following yesterday’s bullish reversal. The reversal bar held just above the 50- and 200-day moving averages, and price is currently holding around the 20-day moving average near $82.
Momentum continues to improve and is moving closer to overbought territory while still pointing higher. A close back above the 20-day moving average could open the door for a move toward the 100-day moving average near $87.
Key Levels
Resistance
$87.27 — 100-day moving average
$89.11 — Upper Bollinger Band
$93.50 — July high
Support
$79.14 — 50-day moving average
$78.19 — 200-day moving average
$75.47 — Lower Bollinger Band
Crude (CL1)
Heating Oil (HOV6)
Heating oil also posted a bullish reversal yesterday but is trading lower heading into the U.S. session. It is currently holding the 20-day moving average, which it has not closed below in more than three weeks and should continue to act as an important pivot on a closing basis.
While yesterday’s bullish reversal would normally be a stronger signal for a potential move higher, its significance is reduced by momentum. Momentum is deeply overbought, has crossed over, and is now pointing lower. That will likely cap any attempt at a meaningful bounce unless momentum can stabilize.
Key Levels
Resistance
4.4400 — High from last week
4.5214 — Upper Bollinger Band
Support
4.0840 — 20-day moving average
3.7198 — 50-day moving average
3.6466 — Lower Bollinger Band
Heating Oil (HOV6)
Crude Spread (CLZ6/CLZ7)
The spread is starting the U.S. session slightly higher at 8.90. The technical picture is similar to both crude and heating oil, with a bullish reversal yesterday. However, the spread appears to be following through more cleanly, as it is trading near the overnight high and above yesterday’s high.
Momentum is overbought and has crossed over and is pointing lower, which could create headwinds for a larger rally from here. For now, the price action remains constructive, but the momentum setup suggests upside may be limited unless momentum turns back higher.
Key Levels
Resistance
10.84 — Double top from last week
11.42 — Upper Bollinger Band
Support
7.92 — 20-day moving average
6.49 — 100-day moving average
6.03 — 50-day moving average
Crude Spread (CLZ6/CLZ7)
Natural Gas Market Overview
Natural Gas (NGV26)
Natural gas is higher again this morning after opening higher overnight. The overnight high reached key resistance at the 50-day moving average near 2.935. Price pulled back slightly from that level but remains higher on the session.
Today marks the second consecutive day of a higher low and higher high following Tuesday’s bullish reversal. That reversal carries more significance because momentum was in neutral territory and pointing higher at the time, providing a more constructive technical setup.
Price also spent much of the overnight session above the upper Bollinger Band, showing strong upside momentum. A break and close above the 50-day moving average would strengthen the bullish setup and open the door for a larger move toward the 100-day moving average near 3.070.
Key Levels
Resistance
2.935 — 50-day moving average
3.070 — 100-day moving average
Support
2.798 — 20-day moving average
2.747 — Tuesday’s reversal bar low
2.685 — Lower Bollinger Band
Natural Gas (NGV26)
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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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