Oil: Nuclear talks pressure prices – ING

💡 DMK Insight

Oil prices are under pressure from US–Iran nuclear talks, but here’s why that matters: The ongoing discussions are creating a complex environment for traders. While the talks could lead to a more stable supply situation, the uncertainty surrounding them is keeping a risk premium in Brent crude. This means that while prices might dip due to optimism, the potential for geopolitical tension remains a wild card. Increased speculative net longs in ICE Brent indicate that traders are positioning for a rebound, but the bullish volatility skew suggests they’re also bracing for potential swings. Look for key resistance levels around recent highs, as a break could trigger further buying. Conversely, if talks falter, we might see a quick sell-off. Traders should monitor the news closely for any updates on the negotiations, as they could shift sentiment rapidly. Also, keep an eye on correlated markets like natural gas, which often reacts to oil price movements and geopolitical developments.