14 Jul 2015
Oil accelerates losses post Iran deal clinched
FXStreet (Mumbai) - Oil benchmarks on both sides of the Atlantic dived deeper on Tuesday following the announcement that Iran and six world's powers had finally sealed a historic nuclear deal that would lead to lifting economic sanctions against Tehran.
Oil weighed oversupply worries post Iran deal
Currently, both Brent and WTI trade over 1.50% lower at 57.30 and 51.17 respectively. Oil prices accentuated downside after the news crossed wires that Iranian nuclear deal is finally reached, with investors’ fretted over more oil to the market, worsening the supply glut.
Reuters reported, citing Iranian diploat, that talks in Vienna between Tehran and six world powers over Iran's nuclear program led to a deal that would lift western economic sanctions against the country, freeing the Iranian oil to the market, which has already been battling with huge oversupply. Tehran currently producing around 2.5 million barrels per day above demand.
Meanwhile, the American Petroleum Institute (API) is due to report its weekly stockpiles data later in the day, with the Energy Information Administration (EIA) figures due to come on Wednesday, with markets estimating a 2.75 billion drop.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 52.26 levels above which gains could be extended to 52.96 levels. Meanwhile, support is seen at 50.76 levels from here losses could be extended to 50 levels.
Oil weighed oversupply worries post Iran deal
Currently, both Brent and WTI trade over 1.50% lower at 57.30 and 51.17 respectively. Oil prices accentuated downside after the news crossed wires that Iranian nuclear deal is finally reached, with investors’ fretted over more oil to the market, worsening the supply glut.
Reuters reported, citing Iranian diploat, that talks in Vienna between Tehran and six world powers over Iran's nuclear program led to a deal that would lift western economic sanctions against the country, freeing the Iranian oil to the market, which has already been battling with huge oversupply. Tehran currently producing around 2.5 million barrels per day above demand.
Meanwhile, the American Petroleum Institute (API) is due to report its weekly stockpiles data later in the day, with the Energy Information Administration (EIA) figures due to come on Wednesday, with markets estimating a 2.75 billion drop.
WTI Oil Technical Levels
WTI oil has an immediate resistance which stands at 52.26 levels above which gains could be extended to 52.96 levels. Meanwhile, support is seen at 50.76 levels from here losses could be extended to 50 levels.