Daily Energy Market Update June 1, 2026

Liquidity’s Daily Market Overview

Energy Market Update

Energy markets opened the week higher as escalating tensions in the Middle East increased concerns over potential supply disruptions. Crude oil rallied more than 3%, with Brent crude trading above $94 per barrel and WTI moving above $90 as traders continued to price in geopolitical risk surrounding the ongoing conflict between the United States and Iran.

The market remains focused on the Strait of Hormuz. While fears of a prolonged disruption have eased from recent highs, uncertainty surrounding regional stability continues to support crude prices and maintain a significant risk premium.

Refined products also strengthened alongside crude oil, reflecting concerns that any disruption to Middle East exports could impact global fuel supplies.

Natural gas prices were modestly higher, although the market remains driven primarily by domestic fundamentals. Traders will continue monitoring geopolitical developments for any broader impact on global energy flows.

Crude (CLN6)

Crude oil (CLN6) opened the U.S. session up 3.23 points at 90.58. The market rebounded from the lower Bollinger Band after four consecutive trading days in which the daily low touched the lower band. Momentum indicators remain in oversold territory but have begun to turn higher, suggesting downside pressure may be easing.

Key Resistance Levels

• 93.55 – 38.2% Fibonacci retracement of the decline from the May 18 high to Friday's low

• 95.55–95.75 – Confluence zone consisting of the 50% Fibonacci retracement and the 20-day moving average

• 98.01 – 61.8% Fibonacci retracement

Key Support Levels

• 86.35 – Friday's low

• 85.71 – Lower Bollinger Band

The recent rebound from Bollinger Band support, combined with oversold momentum, suggests the potential for a corrective rally. However, crude oil will need to clear the 93.55 resistance area to strengthen the case for a move toward the 95.55–95.75 confluence zone.

Heating Oil (HON6):

Heating oil also rebounded from its lower Bollinger Band following Friday's trade. The daily lows from Tuesday through Friday of last week either touched or tested the lower band as momentum indicators moved into oversold territory. With prices now trading above most of last week's closing levels and momentum beginning to turn higher, the market appears positioned for a continued corrective bounce.

Key Resistance Levels

• 3.6882 – 38.2% Fibonacci retracement of the decline from the May 19 high to Friday's low

• 3.7629 – Confluence of the 50% Fibonacci retracement and the 20-day moving average

• 3.8375 – 61.8% Fibonacci retracement

Key Support Levels

• 3.4466 – Thursday's low

• 3.4434 – Lower Bollinger Band

The combination of oversold momentum conditions, support at the lower Bollinger Band, and improving price action suggests the potential for additional upside in the near term. A move through the 3.6882 resistance level would increase the likelihood of a test of the 3.7629 confluence zone.

Crude Spread (CLZ6/CLZ7)

The spread rebounded overnight and is opening the U.S. session up 0.98 at 7.32. While momentum remains in oversold territory, it is not as deeply oversold as either crude oil or heating oil. The overnight rally has pushed the spread above both Thursday's and Friday's highs, and looks like it wants to test the first key resistance level.

Key Resistance Levels

• 7.82 – 38.2% Fibonacci retracement of the decline from the May 18 high to last week's low

• 8.41 – 50% Fibonacci retracement

• 9.01 – 61.8% Fibonacci retracement

Key Support Levels

• 5.91 – Last Wednesday's low

• 5.54 – Lower Bollinger Band

The move above last week's highs and improving momentum suggest the potential for additional recovery. A sustained move through 7.82 would target the 8.41 area, while support remains defined by last week's low and the lower Bollinger Band.

Natural Gas Market Overview

Natural Gas (NGN6)

Natural gas is opening the U.S. session up 0.03 from Friday's close, although prices have come off from the overnight high of 3.39 and are currently trading near 3.32. The market is beginning to show the early signs of a potential reversal pattern after posting a new recent high. Confirmation of a reversal would require a close below the upper Bollinger Band and/or a close below Friday's settlement at 3.29.

Key Resistance Levels

• 3.39 – Overnight high

• 3.46 – 38.2% Fibonacci retracement of the decline from the January high to the April low

• 3.64 – 50% Fibonacci retracement

Key Support Levels

• 3.23 – 38.2% Fibonacci retracement of the rally from the May 27 low to the overnight high

• 3.18 – 50% Fibonacci retracement

• 3.13 – Confluence of the 61.8% Fibonacci retracement and the 20-day moving average

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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