Despite Hopes for an Iran Nuclear Deal, Crude Oil Prices Slump

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EnclaveFX
Aug 16, 2022
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ANALYSIS & NEWS OF CRUDE OIL PRICES

Weak Chinese Data raise Demand Concerns

Brent Crude Oil Drop Made Worse by Hopes for Iran Nuclear Deal


Brent crude is down more than 4% to start the week, which has caused a decline in crude oil futures this morning. First, the first decline in oil prices was caused by dismal data from China, where retail sales posted a significant miss on forecasts, increasing concerns about the outlook for oil consumption.

The Iranian Foreign Minister recently claimed that agreement in discussions is close if Iran's redlines are respected, which has since worsened the trend lower in oil prices. Due to the markets now pricing a more significant likelihood of a successful Iran nuclear deal, oil prices have been under considerable pressure throughout the London session. Although a settlement would probably cause Brent crude oil to drop below $90, attention is now on the US's answer because it is up to them to decide whether or not they concur with the three outstanding issues. As a result, oil is becoming more sensitive to news stories. For those who closely follow the most recent sources of oil over Social Media.