Oil Prices Bounce Briefly as Iran Says No Talks With US

The latest updates from the news wires have picked up comments from the Iranian Foreign Minister Mohammad Javad Zarif, saying that the Iranian government is not interested in holding any talks with the United States apart from talks to reinstate the nuclear deal.

According to Zarif, “Any mediation should focus on bringing back the US to the nuclear deal.” Zarif also described the recent impasse that saw the seizure of an Iranian oil tanker as “politically motivated”, also stating that the seizure of the Iranian oil tanker was “illegal.”

The WTI crude oil asset has bounced off the near term support of 54.92 on these comments, and continues to trade slightly higher this Monday on the back of the reports of the attack on a Saudi oil installation by Yemeni separatists over the weekend.

Technical Play for Crude Oil

WTI crude oil is presently trading at 55.12 (as at the time of writing), having bounced off the near term support at 54.92. Immediate near term resistance lies at 55.60 (R1 pivot). A break of this resistance will bring 56.32 into focus, with the 57.00 resistance lying just ahead. A downside break of the 54.92 near term support will open the door to 54.20.

Price action is still quite muted this Monday and markets may be waiting for triggers of risk-on/risk-off sentiment for heavier volatility.

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WTI Crude Oil Hourly Chart