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- Daily Energy Market Update August 7, 2026
Energy markets were relatively quiet overnight as traders continued to balance hopes for progress on reopening the Strait of Hormuz with ongoing geopolitical risks in the region. Oil prices traded in a relatively narrow range after Wednesday's sharp rally, as optimism surrounding negotiations between Iran and Oman was offset by uncertainty over whether a final agreement can be reached.
President Trump said discussions are "moving along," but reports suggest several key issues remain unresolved, including Iran's proposed restrictions on certain vessels using the waterway. At the same time, Iran-backed Houthi forces launched another large-scale attack in Yemen, reinforcing that security risks across the region remain elevated despite the ongoing diplomatic efforts. Shipping activity through the Strait of Hormuz also remains well below normal, with only limited cargoes continuing to move through the channel.
For now, the market remains headline-driven. Traders will be watching for any official announcement on a Hormuz agreement, along with any changes in regional shipping activity or security developments that could affect global oil supplies.
Crude (CL1)
Crude is down 0.37 at 76.86 (6:45 AM). Yesterday, it rallied to close back above the 200-day moving average, which now comes in at 76.90. Overnight selling has brought price back to test that key support level.
Momentum has moved back to neutral territory but continues to point lower, suggesting upside momentum remains limited. The 200-day moving average will remain the key pivot to watch on a closing basis. A close back below it would increase the risk of another move toward Wednesday's low.
Key Levels
Resistance
80.44 – 50-day moving average
81.75 – 20-day moving average
87.68 – Gap from July 24
Support
76.90 – 200-day moving average
74.24 – Wednesday's low and lowest level since mid-July
72.97 – Lower Bollinger Band
Crude (CL1)
Heating Oil (HOU6)
After opening higher overnight, heating oil sold off and is trading near unchanged at 3.8770 (6:51 AM).
Price once again stalled at the 20-day moving average, marking the third time this week that the level has capped a rally. The 20-day moving average continues to act as the key pivot, making today's close important to watch.
Momentum is beginning to move out of overbought territory but continues to point lower, suggesting rallies may continue to run into selling pressure until momentum begins to stabilize.
Key Levels
Resistance
3.9699 – 20-day moving average
4.2539 – Upper Bollinger Band
4.2888 – High from July 23
Support
3.6855 – Lower Bollinger Band
3.6725 – Double bottom from earlier in the week
3.5779 – 50-day moving average
Heating Oil (HOU6)
Crude Spread (CLZ6/CLZ7)
The spread is down 0.24 at 5.54 (7:00 AM). Overnight, price traded above the highs from the previous two sessions but has since reversed and is now trading below yesterday's close. If the spread closes below yesterday's close, it would form a bearish reversal.
Momentum has moved into neutral territory but continues to point lower. If today's bearish reversal is confirmed on the close, it could lead to additional downside pressure, especially with momentum continuing to point lower.
Key Levels
Resistance
5.93 – 100-day moving average
6.60 – 20-day moving average
8.14 – Last week's high
Support
5.35 – 50-day moving average
4.11 – Lower Bollinger Band
3.92 – Wednesday's low
Crude Spread (CLZ6/CLZ7)
Natural Gas Market Overview
Natural Gas (NGU26)
Natural gas is unchanged in overnight trading at 2.636 (7:20 AM). Price remains contained within yesterday's range, marking the beginning of an inside day. This is also the third consecutive session that price has tested the lower Bollinger Band, highlighting the persistent selling pressure. Overnight trading also formed a double bottom at 2.616.
Momentum remains deeply oversold and continues to point lower, showing little sign that selling pressure is easing. As long as price remains below its recent consolidation range, the near-term bias continues to favor the downside.
Key Levels
Resistance
2.792 – 20-day moving average and bottom of the multi-week trading range from mid-July
2.906 – 38.2% Fibonacci retracement (June high to the double-bottom low)
2.969 – 50-day moving average
Support
2.616 – Double bottom and 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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