Snapshot: Brent Crude is trading at $90.99, down 1.36% on the day, driven by growing expectations of a ceasefire and reopening of the Strait of Hormuz. Today’s catalyst is the ongoing optimism surrounding US-Iran talks, despite denials from Iranian state media.
- Brent is testing the $90.50 intraday low, a breach of which could accelerate the decline.
- Watch for 08:30 ET CAD GDP which could trigger risk-off flows that further pressure oil.
Bias into NY: We are biased bearish on Brent, targeting $90, as ceasefire hopes and potential supply increases outweigh positive risk sentiment signaled by rising Asian and European equity markets.