Oil recovered from a sharp sell off on..........>

OIL: Oil recovered from a sharp sell off on Tuesday on the back of the US

withdrawal from the Iranian nuclear accord (following various will he, won't he

rumours). The US will re-impose pre-agreement sanctions on Iran, so traders are

now focusing on the re-allocation of crude supply & any spillover effects, as

the US has issued buyers a 6-month notice re: reducing their purchasing levels

of Iranian crude.

- WTI has added $1.60 to trade at $70.65, while Brent has added $1.90 to trade

at $76.75.

- Reports suggest that the latest API crude inventory estimate pointed to a

headline crude draw, as well as draws in both gasoline & distillate stocks,

while the body pointed to a build in Cushing stocks. Traders now await

Wednesday's official DoE release.

- As mentioned WTI's sharp sell-off was short lived and aggressively reversed

maintaining pressure on recent 2018 & 3+year highs. Follow through has been

lacking courtesy of the Bollinger band top. Bears now need a close below

yesterday's hourly resistance level ($69.12) to gain breathing room.