News: WTI Crude Oil, Pending Nuclear Deal Decision - Wiki-Forex

WTI Crude Oil, Pending Nuclear Deal Decision

2/17/2022 | 9:39 AM

Current trend

The North American WTI Crude Oil price corrects within a sideways trend, trading around the level of 90.50.

While investors are monitoring the situation around political tensions on the borders of Eastern Europe, new drivers that can determine the movement of energy prices have appeared on the market. Yesterday, Iran's chief negotiator Ali Bagheri Kani said that dialogue with Western countries on the "nuclear deal" is close to completion. The process will probably end in a few days after some "political decisions" from Iran are presented. Most experts believe that Iran is in dire need of oil revenues: if the deal is concluded, the inflow of Iranian crude to the market will be very fast and voluminous – from 0.5 to 1.0M barrels per day in the second half of the year, which can correct asset price by $10-$15.

As for the local trend in the market, the quotes are correcting upwards against the backdrop of data on reserves from the Energy Information Agency (EIA), according to which the indicator increased by 1.121M barrels, while analysts expected a decrease by 1.572M. Cushing's storage facilities fell by 1.900M barrels after falling by 2.801M last week.

Support and resistance

The price moves within the long-term Expanding formation pattern on the global chart. Technical indicators maintain a weakening global buy signal: indicator Alligator's EMA fluctuations range narrows, and the histogram of the AO oscillator forms downward bars in the buying zone.

Resistance levels: 93.00, 96.00.

Support levels: 88.00, 82.50.