Crude Oil Whipsaws On Iranian Deal Story and Subsequent Denial

• Crude oil heads towards the end of the session with moderate losses that mask a much sharper decline that was subsequently reversed concerning Iranian exports.
• WTI slumped to a low of $69.03 after the Middle East Eye reported about a potential US and Iran interim deal ‘on nuclear enrichment and oil exports’ that could have potentially released up to 1mbpd of oil exports.
• That in turn would have counteracted Saudi’s voluntary commitment at the start of the week, something that provided narrow upward sentiment to oil markets this week. The shunt lower started to be reversed before accelerating with the White House subsequently saying such a report is false, almost completely unwinding the initial drop.
• WTI is -1.8% at $71.19, having punched through $70.00 (Jun 2 low) to open $67.03 (May 31 low).
• Brent is -1.4% at $75.88, having cleared $74.18 (Jun 2 low) with its low of $73.63, with a more concerted push lower potentially opening $71.50 (May 31 low).
• Gold is +1.2% at $1963.6 as it benefits from a consistently weaker USD through the session and falling yields after a spike in initial jobless claims. Resistance remains at the key short-term $1985.3 (May 24 high).

WTI 1st futureSource: Bloomberg