WTI oil prices are trading almost flat early on Tuesday, holding above $66 per barrel and close to the six-month high reached during the previous session. Prices are being supported by supply concerns, as the US continues to build up its military presence in the Middle East. Oil traders have begun to price in an increased risk of a large-scale war between the US and Iran, which would likely destabilise the entire region and disrupt crude supplies from one of the world’s leading producing areas. Against this backdrop, traders will be keeping a close eye on any progress, or lack thereof, in the ongoing negotiations aimed at securing a nuclear deal between Washington and Tehran. Given the scale of the US military deployment to the region, the longer the process drags on without a positive outcome, the more nervous oil traders may become, potentially creating further upside for the price of the barrel.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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