Daily Energy Market Update May 8, 2026

Liquidity’s Daily Market Overview

Morning Energy Market Update

Energy markets are trading cautiously to start Friday’s session as geopolitical tensions in the Middle East continue to dominate sentiment. Crude prices are holding relatively steady despite another round of conflicting headlines involving Iran and regional military activity.

Overnight, Iran reportedly seized a tanker in the Gulf of Oman believed to be carrying sanctioned Iranian oil, while the United Arab Emirates stated that its air-defense systems were intercepting missiles and drones. The developments highlight the continued instability surrounding the Strait of Hormuz, a critical chokepoint for global energy flows.

At the same time, the International Energy Agency warned the market is currently losing an estimated 14 million barrels per day of supply because of the conflict, noting that any post-conflict production recovery would likely be gradual. The IEA also reiterated its willingness to take additional measures following March’s coordinated release of strategic reserves.

Despite the ongoing geopolitical risks, crude prices have struggled to regain upside momentum following recent volatility, with markets continuing to balance supply disruption fears against expectations for eventual diplomatic progress. Attention remains centered on developments surrounding the Strait of Hormuz, which remains the key driver of near-term energy market direction.

Energy Market Technicals

Crude (CLM6)
 
Crude is opening the session little changed at 94.87. Momentum has returned to neutral territory, with price trading just below the 20-day moving average, suggesting momentum currently carries only a limited directional bias.

Support levels come in at Wednesday’s low of 88.66, followed by the lower Bollinger Band 82.25 and then the April 17 low at 78.97.

On the upside, resistance is seen at the top of the broader trading channel near 101, followed by the upper Bollinger Band at 108.42 and last week’s high at 110.93.

Heating Oil (HOM6):

Momentum remains overbought but continues to point lower. After opening higher overnight, heating oil is now trading close to unchanged. The elevated momentum suggests there is still room for additional downside movement in the near term.

Key levels to watch on a move lower are Wednesday’s low at 3.5538, followed by the lower Bollinger Band at 3.3464, and then the April 17 low at 3.1701.

On the upside, resistance comes in at the upper Bollinger Band near 4.2155, followed by last week’s reversal bar high at 4.2549.he 20-day moving average at 3.7630, followed by the upper Bollinger Band near 4.2065.

Crude Spread (CLZ6/CLZ7)

Conflicting signals across the timeframes pointed toward consolidation on Wednesday and Thursday, leading to a bounce after the spread tested the 61.8% Fibonacci retracement at 5.11 and formed a double bottom.

Momentum on the 4-hour chart has now recovered into neutral territory after previously being oversold. However, daily momentum remains overbought and continues to point lower. With the shorter-term momentum no longer oversold and the broader daily trend still weakening, price appears vulnerable to a retest of the recent double bottom and potentially a move toward the lower end of the recent trading structure.

If support at 5.11 breaks, the next area to watch is the lower Bollinger Band at 3.30, followed by the April 17 low at 2.78.

On the upside, initial resistance comes in at 7.36, which marks the double top from yesterday and this morning. Above that, the 61.8% Fibonacci retracement of the move from last week’s high to yesterday’s low comes in at 8.13. Beyond that, the next major resistance area is near 9.92, where last week’s high aligns with the upper Bollinger Band.

Natural Gas Market Overview

Natural Gas (NGM6):

Natural gas is starting the US session modestly higher following a relatively narrow overnight range. The hidden bearish divergence pattern remains in place, with momentum near overbought territory and continuing to point lower.

A break and close above the key resistance level at 2.88—representing both the upper Bollinger Band and the highs from earlier in the week—would negate the current bearish setup.

Key support levels to watch are the lower Bollinger Band at 2.66, followed by last week’s low at 2.59.

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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