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  • Crude oil stays in a consolidation phase on Wednesday.
  • Iranian oil supply prospects continue to limit oil’s gains.
  • Investors await EIA’s Weekly Crude Oil Stocks Change data.

Following Monday’s rally, crude oil prices are moving sideways in a tight range for the second straight day on Wednesday. As of writing, the barrel of West Texas Intermediate (WTI) was virtually unchanged on the day at $65.92.

Eyes on US-Iran nuclear talks

The ongoing global economic recovery keeps hopes for a steady rebound in energy demand alive and doesn’t allow crude oil to edge lower.

On the other hand, investors seem to be pricing the possibility of additional Iranian oil supply entering into the market if the US and Iran manage to come up with a nuclear deal that would pave the way for the US to lift sanctions. According to Reuters,  Iran’s government spokesman Ali Rabiei noted that they were optimistic about reaching a deal but Iran’s top negotiator acknowledged that serious issues remained in talks.

Later in the day, the US Energy Information Administration (EIA) will release its Weekly Crude Oil Stocks Change data.

Technical levels to watch for