WTI stays in 2018 tops beyond $70.00, Iran on sight

• Prices of the WTI climbed to fresh yearly tops above the $70.00 mark.
• All eyes on Trump’s decision on Iran later in the week.
• API, EIA weekly reports on crude oil supplies next on tap.

Prices of the barrel of the West Texas Intermediate are prolonging the rally at the beginning of the week, extending the upside further north of the critical $70.00 mark.

WTI looks to Iran

Prices of the barrel of the American benchmark for the sweet light crude oil are extending the recent breakout of the $70.00 barrier amidst increasing nervousness among traders regarding the likeliness that US could reinstate sanctions against Iran later in the week.

All the attention will be on President Trump this week, as he has until May 12 to make a decision regarding the international agreement signed in 2015 to act on Iran’s nuclear programme.

Also supporting prices, prospects of declining oil production in Venezuela remains well and sound amidst the ongoing crisis that has been hurting the Caribbean country in the last years.

In the data space, the usual reports on US crude oil supplies by the API and the EIA are due Tuesday and Wednesday, respectively.

On the positioning front, speculative crude oil net longs dropped to the lowest level since March 13 during the week ended on May 1, according to the latest CFTC report.

WTI significant levels

At the moment the barrel of WTI is up 0.93% at $70.43 and a break above $70.74 (2018 high May 7) would open the door to $71.00 (psychological level). On the downside, the next support emerges at $68.45 (10-day sma) followed by $67.89 (21-day sma) and then $66.88 (low May 2).