Crude oil price is hovering around $64 as investors keep an eye on the ongoing talks regarding the Iranian nuclear deal. The discussions are set to continue this week in an attempt to squash the differences between both sides. Notably, one of the hurdles to successful talks is the uncertainties regarding the new inspection deal.
On Sunday, the UN nuclear watchdog – International Atomic Energy Agency had to postpone its press conference after Iran sent mixed signals on whether it would agree to the new inspection arrangement. The deal would have the UN monitoring Iran’s nuclear sites for an additional month in an attempt to boost the ongoing talks. A successful deal would have the US lifting sanctions on Iran’s oil sector. Notably, the move would increase global oil supply.
Crude oil price will also be reacting to details from the OPEC+ Joint Technical Committee meeting scheduled for 31st May. The event, which was previously scheduled for 25th May, will focus on the current state of global oil demand and supply. In its monthly report, OPEC predicted that global oil consumption will increase by 6 million bpd to a level of 96.5 million bpd. This will place demand at 3.5% lower than the pre-pandemic levels.
WTI Price Technical Outlook
Crude oil price is seesawing at 64 after surging 2.5% on Friday. At the time of writing, WTI futures were up by 0.41% at 64.11. On a two-hour chart, it is trading above the 25 and 50-day exponential moving averages. I expect the prices to trade sideways at 64 as investors await further cues from the week’s events. The bulls may manage to push it to 65 before pulling back. On the flip side, crude oil price may fall to find support at 63.
Crude Oil Price Chart
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