WTI breaks $70, strongest levels in over two years

 The price of oil on Tuesday broke the $70bbl mark for the first time in more than two years after a top US diplomat said that even if the United States were to reach a nuclear deal with Iran, hundreds of US sanctions on Tehran would remain in place.

Spot WTI has charged from a low of $68.49 to a high of $70.23 on the day so far on the basis that additional Iranian oil supply would not be re-introduced into the market soon.

Reuters reports that ''the United States told Iran on Tuesday that it must let the UN atomic agency continue to monitor its activities, as laid out in an agreement that has been extended until June 24 or put wider talks on reviving the Iran nuclear deal at risk.

Barriers to the revival of Iran's nuclear deal remain ahead of talks due to resume this week between Tehran and world powers, four diplomats, two Iranian officials and two analysts told Reuters.''

Additionally, restraint on supply by the Organization of the Petroleum Exporting Countries and allies have been supportive to prices in recent weeks.

The US Energy Information Administration (EIA) said on Tuesday that US crude oil production is expected to fall by 230,000 barrels per day (BPD) in 2021 to 11.08 million BPD.

WTI technical analysis

Meanwhile, from a technical point of view, the weekly bullish impulse is made up of a month's worth of price action and three consecutive week's of higher closing highs and lows.

A correction would be expected to be imminent as the price takes on a monthly resistance area.

A 38.2% Fibonacci retracement comes in just below the 67 level and near to the close of the last monthly candle as a confluence target.

70.50 marks a -61.8% Fibo of the recent daily correction's range.