WTI crashes to $91.50, down $3.50 since early session

• WTI has been selling off sharply in recent trading due to headlines suggesting a US-Iran nuclear deal is in the offing.
• A deal that removed US sanctions on Iranian oil exports could add more than 1 million bpd to global markets.
• WTI has fallen $2.0 in the last hour and is now down $3.50 from the previous session’s highs near $95.00.

Oil has been selling strongly in recent trade as headlines mount about a potential deal between the US, Iran and other world powers that would revive the 2015 nuclear pact and end US sanctions. .to Iranian oil exports. WTI futures for the previous month have dropped more than $2.0 in the last hour and are now down more than $3.50 from previous session highs near $95.00. On the day, WTI is now a little over 50 cents lower. WTI will now be looking at a test of support in the form of a long-term uptrend that has been in play all year thus far, and any break below will likely be followed by a quick drop below $90.00 and towards support at $88.00.

Iran’s top nuclear negotiator Ali Bagheri Kani tweeted Wednesday that after weeks of intense talks, JCPOA participants, including the United States and Iran, are closer than ever to a deal. Shortly after Kani’s tweet, the US State Department said the US is in the midst of the final stages of talks with Iran to revive the 2015 nuclear deal. A deal would open the door to more of 1 million barrels per day, in addition to Iranian exports to return to global markets.

While talk of an imminent return to the 2015 nuclear deal and the return of Iranian supply will likely weigh on markets in the short term, analysts said, tensions between Russia and Ukraine remain another wild card. The latest headlines on this front have not been positive, with government and intelligence officials in the US and several NATO nations warning that there is still no evidence that Russia is reducing its military presence along the Ukraine border. Intelligence officials have been warning that a limited attack in the Donbas region of eastern Ukraine remains a distinct possibility.

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