Daily Energy Market Update May 28, 2026

Liquidity’s Daily Market Overview

Energy Market Update

Oil prices are rebounding this morning after Wednesday’s sharp selloff, although crude has pulled back from overnight highs as traders continue to balance geopolitical risk in the Middle East against growing optimism surrounding a potential U.S.-Iran diplomatic framework. Despite the retracement, both Brent and WTI remain higher on the session.

Crude came under heavy pressure yesterday after reports suggested shipping activity through the Strait of Hormuz was beginning to normalize, easing some immediate concerns over large-scale supply disruptions. The recent decline also pushed several key technical indicators into oversold territory, with WTI settling below its lower Bollinger Band for the first time since mid-December while Brent time spreads weakened to their softest levels since early March.

Despite the recent weakness, markets remain highly sensitive to developments in the Persian Gulf after the U.S. carried out additional strikes on Iranian military targets and imposed new sanctions tied to shipping activity through the Strait. President Trump also reiterated that no single nation would control the waterway, underscoring the continued geopolitical uncertainty surrounding one of the world’s most critical energy transit routes.

For now, the market appears caught between improving hopes for de-escalation and lingering concerns that additional military action could quickly disrupt global crude and LNG flows. Volatility is likely to remain elevated as traders continue to react to developments surrounding Middle East diplomacy, shipping traffic, and broader risk sentiment across commodity markets.

Crude (CLN6)

Crude is opening the U.S. session up 2.06 at 90.75 after closing at the lower Bollinger Band yesterday. The recovery rally extended to an overnight high of 92.52 before retracing, with the market now giving back more than half of the advance.

Momentum indicators continue to point lower as they approach oversold territory, suggesting the broader near-term trend remains weak despite the bounce from recent lows.

The first upside objective remains the open gap from Monday between 94.70 and 94.73. Beyond that, the 20-day moving average near 96.48 continues to act as an important technical pivot and resistance area.

On the downside, initial support comes in at the lower Bollinger Band near 87.83, followed by the May 6th low at 86.13.

Key Levels

Resistance
94.70–94.73 — Open gap resistance
96.48 — 20-day moving average / pivot resistance

Support
87.83 — Lower Bollinger Band
86.13 — May 6th low

Heating Oil (HON6):

Heating Oil also rebounded overnight, rallying to a high of 3.6293 before giving up most of the gains into the start of the U.S. session.

Yesterday’s low formed a double bottom near 3.4500, aligning closely with the May 7th low before the market bounced and settled near the lower Bollinger Band at 3.5289.

Momentum indicators are beginning to move into oversold territory, increasing the risk of a short-term recovery bounce from current levels.

Key Levels

Resistance
3.7629 — 50% Fibonacci retracement / 20-day moving average confluence
3.8375 — 61.8% Fibonacci retracement

Support
3.5035 — Lower Bollinger Band
3.4466 — Yesterday’s low / double-bottom support

Crude Spread (CLZ6/CLZ7)

The crude spread opened the session up 0.46 at 6.85 after rallying to an overnight high of 7.35 before pulling back.

Yesterday’s low aligned closely with the lower Bollinger Band, with the spread managing to rebound off that support area into the close.

Momentum has now moved back into neutral territory, although indicators continue to point lower, suggesting the broader near-term bias remains soft despite the recent stabilization.

Key Levels

Resistance
8.32 — 20-day moving average / 50% Fibonacci retracement confluence
9.01 — 61.8% Fibonacci retracement

Support
5.85 — Lower Bollinger Band
5.18 — Double-bottom support

Natural Gas Market Overview

Natural Gas (NGN6):

Natural gas traded relatively quietly overnight following yesterday’s sharp recovery rally and is opening near unchanged at 3.08.

Yesterday formed a bullish engulfing candle; however, because the pattern developed near the middle of the recent trading range and with momentum still near neutral territory, the signal carries less bullish significance than it would from an oversold condition or major support level.

That said, momentum indicators are beginning to drift closer toward oversold territory, suggesting additional downside may continue to find support on dips.

Key Levels

Resistance
3.10 — 38.2% Fibonacci retracement (last week’s high to yesterday’s low)
3.14 — 50% Fibonacci retracement
3.18 — 61.8% Fibonacci retracement

Support
2.97 — Yesterday’s low
2.95 — Lower Bollinger Band
2.89 — April 30th low

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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