Snapshot: WTI crude trades at 87.28, down 1.59% on the session, as reports of a potential US-Iran agreement to ease shipping restrictions in the Strait of Hormuz weighs heavily on sentiment. The market is currently ignoring a modestly firmer DXY at 99.01 and steady US yields.
- WTI support is eyed at the day’s low of 86.81, with a break potentially opening the door to further downside.
- Watch for headlines around the 08:30 ET Canadian GDP release, which could introduce some cross-market volatility, even if its direct impact on oil is limited.
Bias into NY: Bearish on WTI. The prospect of increased oil flows, however tentative, is outweighing any bullish signals from risk sentiment, although the market remains moderately long with net non-commercial positions at the 69th percentile. A confirmed break of 86.81 would accelerate the move lower.