Brent Crude Oil Struggles to Breach $75 Mark
Crude oil talking points:
- Oil prices are firm in the wake of the Israeli prime minister’s claim that he has proof of a secret Iranian nuclear program.
- However, Brent crude – the global benchmark – is struggling to break through the $75/barrel level.
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Iran nuclear deal boosts oil
A claim by Israeli Prime Minister Benjamin Netanyahu that Israel has proof of a secret Iranian nuclear program has given crude oil prices a fillip this week. “Tonight I’m here to tell you one thing: Iran lied, big time,” Netanyahu said Monday.
His presentation is particularly significant as US President Donald Trump is currently considering whether to pull out of a deal with Iran; a decision due by May 12.
However, the price of crude is currently having difficulty breaking through the psychologically important $75 per barrel level and that could at least delay further gains.
Brent Crude Oil Price Chart, Daily Timeframe (2018 to Date)
If the US does indeed pull out of the Iran nuclear deal, that could lead to a sharp fall in Iranian oil exports and therefore to higher prices unless the US and other oil exporters opt to fill the gap. That has helped boost the price of Brent crude to its highest level since November 2014.
Nonetheless, after reaching a high of $75.60 Monday, the price has eased back, suggesting it has work to do to trade much higher.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.