Oil retreated from the highest level since 2014 before President Donald Trump announces whether he’ll scrap an accord with Iran, a move that could significantly affect the OPEC nation’s crude exports.
New York futures slid as much as 1.5 percent, with Trump set to make a call onwhether he’ll pull out of the 2015 deal between Iran and world powers that eased sanctions on the oil producer in return for curbs on its nuclear program. In the previous session, prices briefly slid below $70 after breaching the level for the first time in 3 1/2 years following news that an announcement would be made at 2 p.m. Tuesday in Washington.
West Texas Intermediate oil for June delivery dropped as much as $1.06 to $69.67 a barrel on the New York Mercantile Exchange and traded at $70.07 as of 12:49 p.m. London time. The contract climbed $1.01 to $70.73 on Monday. Total volume traded Tuesday was about 10 percent above the 100-day average.
Brent for July settlement fell 64 cents to $75.53 a barrel on the London-based ICE Futures Europe exchange. Prices on Monday climbed 1.7 percent to $76.17. The global benchmark crude traded at a $5.54 premium to July WTI.
Source : Bloomberg