WTI Crude Oil Rallies on Uncertainty Over Iran Deal
WTI Crude Oil has been in an upward trend since the start of this week, despite a lack of clarity on a negotiated agreement between the US and Iran. Large players in the market appear to be less confident about a promised agreement, which is reflected in the commodity's technical pattern.
The upside momentum created since last Thursday's lower depths has been technically efficient for day traders, but it also reflects the confusing nature of the Middle East situation. The current price of WTI Crude Oil around $84.250 is a solid indication that large players no longer feel confident about the US White House's progress regarding a Middle East agreement.
Reports from various sources still talk about the potential of an agreement between Iran and the US, but day traders need to understand that large players are treating the situation as a 'must be seen to be believed' testing ground. Until a bona fide agreement is cited and shown, the commodity will remain without clarity, suggesting more nervous price action to come.
The current price of WTI Crude Oil reflects the sensitive circumstances in the Middle East, where occasional military action continues to occur. Fear of another escalation between Iran and the US may be less heightened than it was two and three weeks ago, but the longer the situation remains unclear, larger players are likely to remain nervous.