WTI nears $95, Brent at $101 on stalled US-Iran peace talks

West Texas Intermediate futures on NYMEX traded 1.5% higher near $95.00 during the European trading session on Monday. The WTI crude oil price gained as the Strait of Hormuz, a critical passage to 20% of world oil supply, remains closed, due to stalled peace talks between the US and Iran. The diplomacy stalemate has deepened as Washington called off the US envoys’ visit to Islamabad with Iran, which was scheduled over the weekend, Axios reported. President Donald Trump canceled the envoys’ visit to Pakistan, calling it a waste of time, as the counteroffer by Iran’s foreign minister Seyed Abbas Araghchi, delivered through Pakistan, was not good enough. Meanwhile, Iran has offered another proposal with the precondition being the lifting of the US blockade of Iranian ports. Market experts have warned that oil prices could rise further as long as the Strait of Hormuz remains closed. Under a bull-case scenario, the bank assumes oil flows through the strait remain disrupted through to the end of June and sees Brent spiking to $150 a barrel. At noon Monday, Brent traded 2.2% higher to near $101.30. This week, investors will pay close attention to monetary policy announcements from a number of central banks, especially the Federal Reserve and the European Central Bank. WTI spot holds a near-term bullish bias as the price stabilises above the 20-day exponential moving average (EMA) at $91.71, keeping the recent rebound intact after the pullback from last week’s highs. On the topside, the next key hurdle is the broken downward resistance trend line, with focus around the $100 area, where renewed selling pressure could emerge. Looking down, initial support is seen near the 20-day EMA at $91.71. Broadly, the April 17 low at $78.88 is the key support area. (Source: OANDA) The post WTI nears $95, Brent at $101 on stalled US-Iran peace talks appeared first on Financial Mirror.