The uncertainty surrounding the US-Iran talks keeps traders cautious. Iran’s Foreign Ministry has said there will be no meeting for negotiation in the coming days, but President Trump has indicated that the meeting will take place in Doha. These mixed messages cause some market turmoil. If the negotiations continue, oil prices could drop further, while a failure of talks could quickly bring oil prices back up.
But the physical flow of oil and LNG is important at this point rather than the headlines. In the Middle East, producers continue to load cargoes despite the latest attacks on ships and the recent resurgence in strikes. If the recovery rate persists, then the Gulf flows could reach pre-war levels soon. That is bearish for oil as the increased supply removes the shortage issues. But prices could continue to fluctuate until there is clarity that Hormuz traffic has returned to normal.
WTI Oil Technical Analysis: $66 Support in Focus Below $80
WTI crude oil remains under pressure as the price consolidates below $75 and looks to drop further towards the $66 area. This is the strong long-term support in the WTI market. There is still no sign of a rebound as prices remain under pressure. A break below $66 will likely push prices further downside towards the $60 area. However, the RSI has entered extremely oversold levels and is signaling a strong rebound.
