Commodity Market: US Crude Oil edges lower in volatile trade, investors weigh Iran deal hopes against supply disruption worries

Futures on US West Texas Intermediate Crude Oil edged lower in another volatile trading session on Thursday, as investors weighed the possibility of new supply entering the market amid prospects of a new Iran deal and intensifying supply disruption concerns related to Russia-Ukraine military conflict.

Yesterday White House national security adviser Jake Sullivan said the US and its allies had achieved progress in Iran nuclear negotiations, but there still were issues.

“A lifting of Iranian export restrictions would help alleviate the immense tightness prevalent in crude markets right now,” consultancy JBC Energy said in a note, cited by Reuters.

Iran has already begun preparations for exports ramp-up, while local refiner NIOC has reportedly begun reaching out to former key clients in India and South Korea.

Both WTI and Brent Futures surged more than 5% on Wednesday after media reports emerged stating crude exports from Kazakhstan’s Caspian Pipeline Consortium terminal had completely ceased due to storm damage.

According to Russia’s deputy prime minister, oil supplies could be halted for two months.

Meanwhile, US President Joe Biden is scheduled to meet with NATO allies later on Thursday and may announce more sanctions on Russia over its military campaign against Ukraine.

As of 9:42 GMT on Thursday WTI Crude Oil Futures were edging down 0.21% to trade at $114.69 per barrel. Earlier in the trading session the black liquid rose as high as $116.64 per barrel, which has been its strongest price level since March 9th ($126.84 per barrel).

At the same time, Brent Oil Futures were edging up 0.33% on the day to trade at $121.80 per barrel. Earlier in the trading session the commodity rose as high as $123.71 per barrel, which has been its strongest price level since March 9th ($131.59 per barrel).

Daily Pivot Levels (traditional method of calculation) – WTI Crude Oil Futures

Central Pivot – $112.90
R1 – $117.43
R2 – $119.92
R3 – $124.45
R4 – $128.97

S1 – $110.41
S2 – $105.88
S3 – $103.39
S4 – $100.89

Daily Pivot Levels (traditional method of calculation) – Brent Oil Futures

Central Pivot – $119.40
R1 – $124.30
R2 – $127.21
R3 – $132.11
R4 – $137.02

S1 – $116.49
S2 – $111.59
S3 – $108.68
S4 – $105.78