WTI crude is now down more than 5% to $76.01 on a report that the US will allow Iran to immediately sell oil when the deal is signed. There was some speculation it would be phased or slow walked along with Iran opening the Strait.
Obviously, there was pressure on Trump to do a deal in order to keep crude prices from spiking so this doesn't surprise me. Evidently though, it caught the market off guard and crude is getting hammered down to the lowest levels since the first days of the war.
UPDATE:
- Reports that Iran has pledged to remove all mines and obstacles from the Strait of Hormuz.
From US official:
- Iran must not interfere with navigation in the Strait
- Iran must not obtain nuclear weapon.
Technicals
The price is now moving away from swing area support between $77.44 and $78.97 and the broken 61.8% level near $79.81(see yellow area). The next key target comes in against its key 200 day moving average (overlayed green dash line) at $73.48.
Getting below that key MA level, and traders will start to target the February 27 closing level right before the start of the war at $67.04.
