Oil falls further on a report that Iran could be allowed to immediately sell oil
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.
The price is now moving away from swing area support between $77.44 and $78.97. The next key target comes in against its key 200 day moving average at $73.48. Getting below that level, and traders will start to target the February 27 closing level right before the start of the war at $67.04.
This article was written by Adam Button at investinglive.com.