Brent crude fell for a third straight session as Iran and Oman advanced a temporary shipping corridor through the Strait of Hormuz, while satellite images showed tankers loading Iraqi crude at a pace not seen in weeks. WTI futures settled little changed near $82, caught between resistance and support levels that traders say will decide the next move.
Brent crude tumbled to $85 a barrel early Wednesday, down more than 9% for the week, while West Texas Intermediate traded around $80. The declines mark a third consecutive session lower as Iran and Oman advance plans for a temporary shipping corridor.
Iran and Oman push interim shipping deal
Oman's state news agency reported that Iranian Foreign Minister Abbas Araghchi and Omani Foreign Minister Badr Albusaidi discussed an "interim framework" establishing a temporary joint shipping corridor. Iranian Deputy Foreign Minister Kazem Gharibabadi said the two countries agreed on a temporary route and intend to negotiate a permanent corridor within 30 to 60 days, according to Tasnim. No timeline has been set for when the temporary deal would take effect.
Oil loadings from Iraq's Persian Gulf export terminals surged at the start of the week. Satellite imagery showed seven tankers collecting Iraqi cargoes with a combined capacity of roughly 13 million barrels, according to Bloomberg. According to Bloomberg: "Iran and the US are more likely to be in a newer state of de-escalation", said Dennis Kissler, senior vice president for trading at BOK Financial Securities.
WTI stalls at moving-average resistance
WTI futures settled at $82.23, down $0.13 on the day, after trading as high as $83.31 and as low as $79.62. The rebound from the session low stalled below the 200-hour moving average at $84.05 and the 100-hour moving average at $84.38, and the article's analyst said sellers remain more in control while price trades below both averages.
On the downside, the day's low held above an upward-sloping trendline near $79.32, the key support level for buyers. A break below that line would open the door toward the 200-day moving average at $77.73, while a move above the moving-average cluster would target a trendline near $86.60 and then the 100-day moving average at $87.40.
Risk premium remains embedded
Crude remains up more than 41% this year following the US-Iran conflict and the Hormuz disruptions. Still, there is no comprehensive U.S.-Iran peace agreement, and questions over sanctions and the waterway's permanent management remain unresolved, keeping the market vulnerable to sharp moves on diplomatic headlines. Previous de-escalation attempts have repeatedly broken down, and until a permanent shipping deal is signed, the risk premium tied to Hormuz is likely to stay embedded in crude and refined-product markets.
Sources: Oilprice.com, Investinglive
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