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- Daily Energy Market Update September 3, 2026
Oil traded lower initially this morning following President Trump’s comments that the renewed U.S.-Iran fighting could be short-lived, but has since reversed sharply and is now trading higher on the day at 92.41 (7:20 a.m.). The reversal puts crude back near the highs of the recent move and highlights the relationship between crude prices and shipping activity through the Strait of Hormuz.
The latest escalation between the U.S. and Iran has renewed concerns over potential disruptions to physical oil flows, while uncertainty remains over how long the conflict will continue. For now, the market continues to respond quickly to each new headline, with the risk of further disruption keeping underlying support in place.
The broader market setup remains supportive, with strength continuing across the forward curve and refined products. The positioning in the options market also continues to reflect a bullish bias toward higher crude prices.
For traders this morning, the key development is that crude started lower but has reversed sharply higher. The ability to hold those gains will be important, particularly with crude trading near recent highs and the technical picture becoming increasingly extended.
Crude (CL1)
Crude started lower but quickly reversed. Today marks the third consecutive day with price making a higher high. Today’s low, so far, is also higher than yesterday’s low.
Momentum has cleanly turned higher and has moved into overbought territory. With price holding above the upper Bollinger Band for the third day in a row and momentum pointing higher, the market looks like it wants to test the July high at 93.50.
Key Levels
Resistance
93.50 — July high
98.30 — 61.8% Fibonacci (April 7 high to July 2 low)
Support
91.69 — Upper Bollinger Band
86.70 — 100-day moving average
84.83 — 20-day moving average
Crude (CL1)
Heating Oil (HOV6)
Heating Oil opened lower overnight and traded soft to start, but then rallied into the U.S. open. Yesterday marked the second consecutive day with price closing above the upper Bollinger Band. Interestingly, price attempted to post a bearish reversal yesterday, but the close was higher than the previous day, so the bearish reversal did not occur.
The bearish divergence is still something to watch, but without confirmation from a reversal in price, it is not strong enough on its own to expect a meaningful retracement.
Momentum has turned higher and is in overbought territory, but the overall level of stochastic momentum does not confirm the strength we have been seeing in heating oil.
Key Levels
Resistance
4.7000 — Upper Bollinger Band
4.7661 — Yesterday’s high
Support
4.4400 — August 31 high and key pivot area
4.2775 — 20-day moving average
Heating Oil (HOV6)
Crude Spread (CLZ6/CLZ7)
The spread is up 0.54 from overnight and is trading at 14.73, with 14.97 the overnight high. Today marks the fourth consecutive day making a higher high and the sixth consecutive day making a higher low. This highlights the strong momentum behind the rally. Price is also comfortably trading above the upper Bollinger Band after closing above the band yesterday and the day before.
Momentum has crossed over and is now pointing higher while sitting in overbought territory.
As with heating oil, the spread is also showing bearish divergence with the new highs over the last few days. However, without bearish confirmation in price, the divergence is only part of the story and is not enough on its own to signal a meaningful reversal.
Key Levels
Resistance
14.97 — Overnight high
Support
14.03 — Upper Bollinger Band
10.84 — Double top (now pivot level) from August
9.71 — 20-day moving average
Crude Spread (CLZ6/CLZ7)
Natural Gas Market Overview
Natural Gas (NGV26)
Natural Gas gapped open higher overnight and is now trading +0.040 at 2.996. Today marks the third consecutive day with price making a higher low and the seventh consecutive day that price has traded at the upper Bollinger Band, highlighting the underlying support in Natural Gas.
Momentum is overbought but is still pointing higher. Having held above the key 50-day moving average, we are now watching the 100-day moving average at 3.054, which we have not seen trade above in months.
Key Levels
Resistance
3.0540 — 100-day moving average
3.343 — 38.2% Fibonacci (January high to August low)
3.380 — 200-day moving average
Support
2.906 — 50-day moving average
2.832 — Bullish reversal bar low from last week
Natural Gas (NGV26)
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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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