FUNDAMENTAL OVERVIEW Crude oil sold off last Tuesday as the expectations for a US-Iran deal grew stronger.
In fact, on Tuesday, Qatari mediators said that the language for a possible US-Iran agreement had been drafted and US Treasury Secretary Bessent confirmed that an Iran deal could have come as soon as Wednesday and would have included the reopening of the Strait of Hormuz
The losses started to get trimmed though because the anticipated timeline for the deal passed without an announcement and there have been mixed messages regarding the deal and the Hormuz strait. Nevertheless, the lack of US attacks on Iran is a good signal and this will likely keep a lid on oil prices barring another escalation. CRUDE OIL TECHNICAL ANALYSIS – DAILY TIMEFRAME On the daily chart, we can see that crude oil dropped below the key 78.00 support zone but eventually erased most of the losses.
The price is now trading above the support. This is where we can expect the buyers to step in with a defined risk below the support to position for a rally back above the $90 level. The sellers, on the other hand, will want to see the price falling back below the support to pile in for a drop into the 68.00 level next.