Brent oil has also pulled back as traders reacted to the EIA report and waited for U.S. – Iran negotiations.
These negotiations will take place in Geneva, Switzerland, on Thursday. Ahead of the talks, Iranian Minister of Foreign Affairs Abbas Araghchi said that the deal with the U.S. was within reach.
In his recent State of the Union speech, U.S. President Donald Trump said that Iran was the world’s number one sponsor of terror and that he would not allow the country to have a nuclear weapon.
At this point, the oil market pulls back due to bearish fundamentals, but traders are not ready to increase their short positions due to geopolitical risks.
Traders will wait for the third round of U.S. – Iran negotiations and react to first news from these talks. Most likely, tomorrow’s trading session will be volatile, so traders should be prepared for fast moves.
From the technical point of view, Brent oil is trying to settle back below the $71.00 level. In case this attempt is successful, Brent oil will move towards the nearest support, which is located in the $69.50 – $70.00 range.
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