WTI tumbles below $95.00 on Iran’s nuclear deal progress ahead of Powell’s speech

• WTI slides from weekly highs around $95.73 on traders unable to crack the 200-DMA.
• Iran’s nuclear deal could add close to 3 million BPD to the market, easing energy prices.
• OPEC+ is open to cutting oil output at their next meeting via sources.

Western Texas Intermediate, also known as WTI, begins Friday’s Asian session almost flat after diving $2 on Thursday, spurred by several factors. Iran’s possible return to the oil market and higher US interest rates in the US would weaken demand for oil in the largest economy in the world. WTI is trading at $92.96 per barrel, recording marginal losses of 0.12%.

WTI falls on Iran nuclear deal and Powell’s speech

Sentiment remains upbeat, though with a cautious tone in the markets. Investors bracing for the US Federal Reserve Chair Jerome Powell’s speech maintain most of the market participants on the sidelines.

The Organization of Petroleum Exporters Countries, also known as OPEC, noted that the cartel could consider making output cuts at the next meeting, even though the theme has not been added to the agenda, according to sources.

Further headwinds for WTI is a possible agreement of a new nuclear deal between Iran and the US. If both parties get the job done, that will free Iran’s more than 2 million BPD into the oil market, tapping energy prices down amidst a worldwide environment of inflation hitting multi-decade levels.

WTI Key Technical Levels