• Unconfirmed US-Iran deal may unlock Iranian oil exports, pressure WTI prices.
  • Saudi Arabia’s crude oil output cut of 1M bpd softens WTI’s decline.
  • US Dollar weakness caps WTI’s fall as jobs report spurs rate hike uncertainty.

Western Texas Intermediate (WTI), the US crude oil benchmark, dropped sharply during Thursday’s North American session, courtesy of an “unconfirmed” report that the United States (US) and Iran may be near a temporary nuclear deal, which could unblock sanctions imposed by the US on Iran oil exports. WTI is trading at $70.38, below its opening price by 2.82%.

US crude benchmark plunges amidst rumors of potential Iran sanctions relief

According to Reuters, “Oil fell on a news report, citing sources, that Iran and the US are nearing a temporary deal that would trade some sanctions relief in exchange for reducing Iran’s uranium enrichment.”

If Iran agrees to reduce its uranium-enriched development, it could export up to a million barrels of oil daily and access frozen funds abroad.

WTI’s fall was cushioned by over-the-weekend developments with the Organization of Petroleum Exporting Countries and its allies (OPEC+) meeting on Sunday, with Saudi Arabia agreeing to cut its crude oil output by 1 million barrels per day (bpd) in July, as the cartel tries to boost oil prices.

Another factor that capped WTI’s fall was stockpiles in the US dropped last week by 451K barrels on June 2, as reported by the US Energy Information Administration (EIA). The markets expected a rise of 1M barrels per day.

Notably, the greenback posted several losses after a labor market report indicated that unemployment claims in the United States (US) rose above estimates. After the data, the consensus amongst investors that the US Federal Reserve (Fed) will skip increasing rates at the June meeting weakened the US Dollar. The US Dollar Index (DXY) is down 0.67%, at 103.347.

WTI Price Analysis: Technical outlook

WTI Daily chart

WTI remains neutral to downward bias, yet still below the 20-day Exponential Moving Average (EMA), the first resistance at $71.86. Oil will continue its downtrend past that area and can challenge 2023 year-to-date (YTD) low of $63.61 if sellers claim the May 31 low of $67.08. It should be said that oscillators justify further downside, but if WTI breaks above the 20-day EMA and clears the 50-day EMA at $73.3s5, that could pave the way for further gains.

WTI US OIL

Overview
Today last price 70.88
Today Daily Change -1.64
Today Daily Change % -2.26
Today daily open 72.52
 
Trends
Daily SMA20 71.65
Daily SMA50 74.78
Daily SMA100 75.47
Daily SMA200 78.75
 
Levels
Previous Daily High 73.27
Previous Daily Low 71.11
Previous Weekly High 73.58
Previous Weekly Low 67.12
Previous Monthly High 76.61
Previous Monthly Low 64.31
Daily Fibonacci 38.2% 72.44
Daily Fibonacci 61.8% 71.93
Daily Pivot Point S1 71.33
Daily Pivot Point S2 70.14
Daily Pivot Point S3 69.18
Daily Pivot Point R1 73.49
Daily Pivot Point R2 74.46
Daily Pivot Point R3 75.65

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD consolidates in a range above mid-0.6700s

AUD/USD consolidates in a range above mid-0.6700s

AUD/USD holds steady above mid-0.6700s during the Asian session on Tuesday. The US Dollar languishes near a three-month low touched on Monday. Apart from this, the prevalent risk-on environment, bets that the RBA could be raising interest rates again and hopes for more stimulus from China lend support to the pair.

AUD/USD News

EUR/USD Monday bidding blinks as ECB rate call looms over the horizon

EUR/USD Monday bidding blinks as ECB rate call looms over the horizon

EUR/USD fell short of recent bullish momentum, pulling back sharply after a brief jump above 1.0900 to kick off the new trading week and keeping price action strung out along the top end of a descending price channel. 

EUR/USD News

Gold price holds comfortably above $2,400 amid September Fed rate cut bets

Gold price holds comfortably above $2,400 amid September Fed rate cut bets

Gold price is seen consolidating in a range during the Asian session on Tuesday. Growing acceptance that the Fed will start cutting interest rates in September keeps the US Dollar close to over a three-month low and continues to offer support to the non-yielding yellow metal. The upbeat market mood is seen acting as a headwind for the safe-haven precious metal.

Gold News

Meme coins soar in double-digit gains as PEPE, WIF, FLOKI, MOG lead the charge

Meme coins soar in double-digit gains as PEPE, WIF, FLOKI, MOG lead the charge

Meme coins are leading the crypto market again as the ripple effect of Bitcoin's recovery is flowing across major crypto categories. PEPE, WIF, FLOKI and MOG are at the forefront of the recovery, elevating their daily performance above the 20% mark on Monday.

Read more

The Trump trade

The Trump trade

The US markets may have had a mild reaction to the assassination attempt on Donald Trump at a rally in Pennsylvania at the weekend, however, there are long term ramifications for financial markets, particularly in Europe.

Read more

Forex MAJORS

Cryptocurrencies

Signatures