Daily Energy Market Update June 2, 2026

Liquidity’s Daily Market Overview

Energy Market Update

Energy markets are giving back a portion of Monday's sharp gains as traders reassess geopolitical risks in the Middle East. Crude oil futures are trading lower this morning after reports of progress in negotiations involving Iran and indications that a ceasefire agreement between Israel and Hezbollah may be taking shape.

While no formal agreements have been reached, optimism surrounding a potential de-escalation has reduced some of the risk premium that fueled Monday's rally. Brent crude has slipped back below $94 per barrel, while WTI crude is trading near $91 as traders weigh the likelihood of supply disruptions against the possibility of a diplomatic resolution.

Despite the pullback, uncertainty remains elevated. The Strait of Hormuz continues to be a focal point for energy markets, and reports indicate that major LNG exporters Qatar and the UAE are taking extraordinary measures to move cargoes through the region as shipping risks persist. The situation highlights the ongoing vulnerability of global energy supply chains despite improving sentiment.

For now, markets appear to be shifting from worst-case supply disruption scenarios toward a wait-and-see approach, with traders closely monitoring geopolitical developments for further direction.

Crude (CLN6)

Crude oil (CLN6) is opening the session down 1.15 and trading within a relatively tight inside range following yesterday's strong rally. The advance stalled just short of a key confluence zone formed by the 50% Fibonacci retracement and the 20-day moving average. Prices traded modestly higher overnight before easing into the U.S. open.

Momentum indicators remain oversold but continue to turn higher, suggesting that downside pressure is beginning to ease. As momentum works back toward more neutral levels, pullbacks are likely to attract buying interest and find support above recent lows.

Key Resistance Levels

• 95.10 – 20-day moving average

• 95.78 – 50% Fibonacci retracement

• 98.01 – 61.8% Fibonacci retracement

Key Support Levels

• 86.35 – Friday's low

• 85.60 – Lower Bollinger Band

The market remains in a corrective rebound phase, with the 95.10–95.78 area serving as the first major resistance zone. A move through that confluence area would target the 98.01 Fibonacci level, while improving momentum suggests that pullbacks may be limited as the market continues to recover from oversold conditions.

Heating Oil (HON6):

Heating oil is opening the U.S. session lower after trading near unchanged overnight. The market is posting an inside day following yesterday's sharp rally, which stalled at a key resistance confluence consisting of the 20-day moving average and the 50% Fibonacci retracement near 3.7651.

Momentum has crossed higher from deeply oversold territory, suggesting that downside momentum is fading. As momentum works its way out of oversold territory, pullbacks are likely to find support and attract buying interest.

Key Resistance Levels

• 3.7472 – 20-day moving average

• 3.7629 – 50% Fibonacci retracement

• 3.8375 – 61.8% Fibonacci retracement

Key Support Levels

• 3.4466 – Last week's low

• 3.4295 – Lower Bollinger Band

The 3.7472–3.7629 area remains the key resistance zone to watch. A breakout above that confluence would target the 3.8375 Fibonacci level. While the market may consolidate after yesterday's rally, improving momentum conditions suggest that dips are likely to find support until the oversold condition has been fully worked off.

Crude Spread (CLZ6/CLZ7)

The crude oil spread is opening the U.S. session down 0.38 at 7.08 and is currently trading within an inside day pattern following yesterday's rally. The advance stalled at 8.40, which corresponds closely with the 50% Fibonacci retracement and remains a key resistance level.

Momentum indicators have begun to turn higher from oversold territory, suggesting that downside pressure is easing. While the spread may consolidate in the near term following yesterday's move, improving momentum conditions favor additional recovery as long as support levels remain intact.

Key Resistance Levels

• 8.03 – 20-day moving average

• 8.41 – 50% Fibonacci retracement and yesterday's high

• 9.01 – 61.8% Fibonacci retracement

Key Support Levels

• 5.91 – Last week's low

• 5.51 – Lower Bollinger Band

Natural Gas Market Overview

Natural Gas (NGN6)

Natural gas posted a bearish engulfing candle yesterday, signaling that upside momentum may be beginning to fade following the recent rally. While the market opened slightly higher overnight, prices have since drifted back toward yesterday's settlement. Overnight trading has been relatively quiet, with the range measuring less than one-third of yesterday's range, resulting in an inside day pattern.

Momentum remains elevated but has not yet reached overbought territory. The combination of yesterday's bearish reversal candle and today's consolidation suggests the market may be pausing before its next directional move.

Key Resistance Levels

• 3.30 – Upper Bollinger Band

• 3.39 – Yesterday's reversal high

Key Support Levels

• 3.13 – 61.8% Fibonacci retracement of the rally from last week's low to yesterday's high

• 3.12 – 20-day moving average

A move above 3.39 would negate the near-term bearish reversal signal and keep the recent uptrend intact. On the downside, the 3.13–3.12 area represents an important support zone. A break below that confluence could trigger a deeper correction as the market works off its elevated momentum readings.

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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