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The Negotiations Between Iran and the IAEA did not Affect Oil Dynamics

3/6/2023 12:52 PM

Benchmark Brent Crude Oil prices are trading around the key level of recent months at 84.00, not actively reacting to incoming news from Iran, whose authorities announced significant progress in negotiations with the International Atomic Energy Agency (IAEA) regarding guarantees under the Non-Proliferation Treaty nuclear weapons. In particular, Das Erste reports that Iran will allow specialists from the agency to carry out a more thorough inspection of nuclear facilities amid recent reports that the country has eighteen times more enriched uranium than provided for in the agreement. The details of this clearance are not yet clear but it is a big step towards the possible lifting of sanctions on the Iranian economy, which could provoke an increase in the supply of cheap oil to the market.

While the details of this agreement are only being clarified, Saudi Arabia has already begun to adjust prices and increased the selling price of Arab Light for Asian buyers by 2.5 dollars per barrel, and for European countries by 1.0 dollars per barrel. Thus, the country continues to adjust the delivery schedule approved earlier, referring to the Ukrainian crisis and the need to maintain a price balance in the market.

On the daily chart, the trading instrument moves within the local Triangle pattern, gradually rising toward the resistance line.

Technical indicators keep a poor buy signal: fast EMAs of the Alligator indicator crossed the signal line upwards, and the AO histogram forms rising bars, approaching the transition level.

Resistance levels: 86.80, 91.00. | Support levels: 82.80, 78.20.

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