WTI retreats on reportedly looming US-Iran nuclear deal

WTI, the US crude oil benchmark, dropped sharply during Thursday’s US trading session due to an “unconfirmed” report that the United States and Iran may be closer to a temporary nuclear deal, which could unblock sanctions imposed by the US on Iran oil exports. At the time of writing the American crude oil is trading around $71.40 per barrel.

The news suggests that if Iran agrees to reduce its uranium-enriched development, it could export up to a million barrels of oil daily and access frozen funds abroad.

However, WTI’s fall was cushioned by over-the-weekend developments with the Organization of Petroleum Exporting Countries and its allies (OPEC+) meeting on Sunday, with Saudi Arabia agreeing to cut its crude oil output by 1 million barrels per day (bpd) in July, as the cartel tries to boost oil prices.

Another factor that capped WTI’s fall was stockpiles in the US dropped last week by 451K barrels on June 2, as reported by the US Energy Information Administration (EIA).