Oil back on the upswing, WTI eyes $69 once more
- Crude lifts as Iran returns to headlines as the US mulls over abandoning the Iran deal.
- US oversupply and its price-lowering effects are being scrubbed by investor concerns that the Middle East could continue to destabilize.
Crude oil is continuing to test into recent highs, currently testing the 68.70 region.
Despite the US' consistent, relentless outpouring of crude oil as they march their way to being the world's single largest producer of oil, the Middle East continues to hamper the price-deflating effects of demand-crushing supply. Now that the Syrian civil war has stopped spilling over into international headlines with little conflict between the US and Russia, Iran has stepped up to take center stage of crude-inflating concerns stemming from the ME.
There are serious concerns that the US may pull out of the Iran deal once and for all, as US President Trump has vehemently insisted he is not a big fan of the deal, which sees Iran receiving a pass on tough international trade sanctions and tariffs as punishment for trying to develop nuclear weapons. Tuesday say Israel's Prime Minister Netanyahu address the world and say they had evidence that Iran had been building nuclear weapons when they said they weren't, and WTI oil prices surged over two dollars a barrel on reaction as Israel continues to push the US to abandon the Iran deal, re-imposing stiff sanctions on Iran which would ostensibly push the Middle Eastern country back into their nuclear weapons program.
Crude oil levels to watch
WTI continues to maintain buoyancy, clattering against the ceiling as the fossil fuel trades into three-year highs as oil bulls set their sights on the 70/barrel level. The current ceiling blocking the way to new multi-year highs is the 69.50 level, with support from the last swing high at 66.50 and further down at April's low of 61.80.