After a strong Monday rally pushed WTI north of $70 and Brent above $76 for the first time since November 2014, another tweet from the US President sent prices scattering shortly after the settlement.
Oil prices fell by almost $1/barrel and refined products dropped nearly 2 cents in less than 20 minutes following the announcement that a decision on the Iran nuclear agreement would be announced Tuesday afternoon, 4 days ahead of the latest deadline. Twitter-following-trading programs have been around for more than 5 years, so the reaction isn’t too shocking, but it’s still unclear whether those programs are able to navigate #FAKENEWS.
The stage is set for another breakout rally if WTI can hold above $70, with little on the charts to get in the way of another $5 run for crude oil prices. Refined products still have some work to do to break through their 2018 highs, but if they can join crude, they too have little technical resistance standing in the way of another 10 cent increase.
While the Iran announcement will be the main focus until the expected announcement around 2pm Eastern, the inventory reports will take their place in the weekly routine shortly thereafter.