WTI drops on Iran’s deadline extension

FXStreet (Mumbai) - WTI oil futures on the Nymex resumed its downward trajectory as traders await the results of the Iran nuclear negotiations after the deadline for talks was extended ahead EIA weekly report.

WTI back below USD 48

Currently, WTI trades nearly -0.80% lower at 47.22/ barrel, hovering near new five day lows at 47.06 levels. Crude prices remains pressured as talks between six worlds powers and Iran continue beyond the deadline, with investors worried that the country could add to a global oil oversupply if sanctions are lifted.

The two key details were the timetable for lifting United Nations Security Council sanctions on Iran as well as what nuclear work Tehran would be permitted to do in the final years of an agreement.

"Crude oil prices fell as the market awaits the results of the Iran nuclear deal. Speculation that the parties involved in the negotiations have moved closer to a preliminary deal on curbing Tehran's nuclear program pressured prices," ANZ analysts noted.

Meanwhile, markets now await the Energy Information Administration (EIA) weekly crude stockpiles report which may show a rise of 4.18 million barrels for last week, which would be the 12th weekly rise in a row, adding to further downside in crude prices.

Crude Oil Technical Levels

WTI oil has an immediate resistance which stands at 49 levels above which gains could be extended to 49.46 levels. Meanwhile, support is seen at 47 levels from here losses could be extended to 46.67 levels.