At the beginning of the week, oil quotes have once again switched into a downward correctional phase in light of rumors of advancements in the negotiations between Iran and the G6. Brent at 10:40 EET was selling for $57.70 a barrel and WTI with August delivery was going for $51.76. By last week’s close, North Sea oil on August contracts was at $58.70 per barrel and the price of light crude was $52.80.
Rumors about the negotiations between Iran and the G6 coming to an end have put real pressure on oil quotes. Contradictory information is constantly coming out of Vienna. Nevertheless, it’s clear that the deadline for coming to an agreement is shifting as the negotiations drag on and this is not giving the bears any room to push on further. Furthermore, the oil price is being propped up by Chinese statistics. In June the country’s export volume increased by 2.8%, whilst imports fell by 6.1%: this is much better than expected.
Oil will be under pressure until the end of the day: Brent will be trading $56.5-58 a barrel and WTI will be between $51-52.