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US-Iran Deal Rumors Drive Volatile Thursday Session, Benchmarks Tracking Lower For The Week

OIL

Crude oil had a volatile Thursday session. Benchmarks slumped on Middle East news reports of a potential US and Iran interim deal ‘on nuclear enrichment and oil exports’ that could have potentially released up to 1mbpd of oil exports. WTI fell close to $69/bbl, while Brent got to around $73.60/bbl, before both benchmarks rebounded. This followed as the US State Department denied the reports, stating "any reports of an interim deal are false".

  • WTI closed back around $71.30/bbl in NY, still a dip of 1.7% for the session. In early dealings today we are tracking around $71/bbl.
  • Technically, for WTI, having punched through $70.00 (Jun 2 low) it opens $67.03 (May 31 low). For Brent, 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).
  • Both benchmarks are tracking lower for the week at this stage.

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