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- Daily Energy Market Update August 6, 2026
Energy markets were relatively quiet overnight as traders awaited further developments on efforts to reopen the Strait of Hormuz. Oil prices remained stable after reports that Iran and Oman reached a provisional agreement on shipping routes through the waterway, though a broader U.S.-Iran agreement has yet to be finalized.
Reports also showed the UAE has successfully maintained crude exports near pre-conflict levels by using shuttle tankers and alternative logistics to move oil through and around the Strait of Hormuz. Those additional flows have helped offset some of the supply disruptions in the region, limiting upward pressure on crude prices despite ongoing geopolitical tensions.
While optimism surrounding diplomatic progress has improved market sentiment, shipping through both the Strait of Hormuz and the Red Sea remains below normal as security risks persist. The market will continue to watch for confirmation of a broader U.S.-Iran agreement, along with any changes in regional shipping activity that could affect global oil supplies.
Crude (Cont. Contract)
Crude is trading at 76.15 this morning after closing below the 200-day moving average (76.44) for a second consecutive session yesterday.
Overnight price action has remained contained below the 200-day moving average, with trading confined within yesterday's range. The market appears to be consolidating following this week's sharp decline as it searches for its next directional move.
Momentum has moved back to neutral but continues to point lower, suggesting the recent downside trend has slowed but has not yet reversed. The 200-day moving average remains the key pivot level to watch on a closing basis. A move back above it would improve the near-term technical outlook, while continued closes below would keep the downside bias intact.
Key Levels
Resistance
76.44 – 200-day moving average
80.65 – 50-day moving average
81.42 – 20-day moving average
Support
71.61 – Lower Bollinger Band
67.04 – Reversal bar low from July 2nd
Crude (CL1)
Heating Oil (HOU6)
Heating oil is posting another inside day in overnight trading and is entering the New York session down at 3.7703 as of 7:00 AM.
Price continues to consolidate following this week's sharp decline, with trading remaining within yesterday's range. Momentum remains in overbought territory but continues to point lower, suggesting the recent correction may have further room to extend. A break below Tuesday and Wednesday's double bottom at 3.6725 would signal another leg lower.
Key Levels
Resistance
3.9439 – 20-day moving average (recent pivot)
4.2888 – High from late July
Support
3.5797 – Lower Bollinger Band
3.5661 – 50-day moving average
3.4657 – 100-day moving average
Heating Oil (HOU6)
Crude Spread (CLZ6/CLZ7)
The spread is up 0.45 overnight, trading at 4.84.
Yesterday completed a bullish reversal, with the spread making a new low for the move before closing above Tuesday's close. The reversal suggests sellers may be losing some control, although momentum has moved back to neutral territory and continues to point lower, reducing the strength of the signal.
The next key test will be whether the spread can build on yesterday's reversal with additional buying or whether it runs into resistance near the 50-day and 100-day moving averages.
Key Levels
Resistance
5.35 – 50-day moving average
5.94 – 100-day moving average
6.42 – 20-day moving average
Support
3.92 – Yesterday's reversal low
3.39 – Lower Bollinger Band
3.03 – 200-day moving average
Crude Spread (CLZ6/CLZ7)
Natural Gas Market Overview
Natural Gas (NGU26)
Natural gas is down 0.039 this morning, trading at 2.649 as of 7:50 AM.
Price is trading below the bottom of the recent trading range, which comes in at 2.659. Last week's move above the range proved to be a false breakout, making today's move below support an important level to watch on a closing basis. A close below 2.659 would confirm the breakdown and increase the likelihood of additional downside.
The main thing working against a deeper move lower is momentum, which is now extremely oversold. While that doesn't mean prices can't continue lower, it does suggest selling pressure may begin to slow and increases the risk of a bounce.
Key Levels
Resistance
2.806 – 20-day moving average
2.810 – Last week's high
2.970 – Upper Bollinger Band
Support
2.650 – Lower Bollinger Band
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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