WTI crude oil consolidation goes on as US-France discuss Iran progress

• Crude oil WTI benchmark is trading in a tight range between the 67.30 and the 69.00 level.
• The Iranian deal question is taking center stage and May 12 is the deadline. 
• The EIA build number earlier on Wednesday did not affect the overall bull sentiment on oil.

Crude oil is trading at around $67.93 a barrel virtually unchanged on Wednesday as the US session is coming to a close.   

French President Emmanuel Macron is negotiating with US President Donald Trump in Washington this week. Macron is trying to convince Trump to keep the Iranian deal as it is. 

However, Trump mainly disagrees with the Iranian deal as he wants tighter control in regards to the missile testing, human rights abuses and regional military activity in Syria, Yemen, and Lebanon. 

French President Macro is indeed suggesting to work on those issues. However, one major clause remains unresolved; the nuclear restrictions should be lifted by 2025. Trump is strongly against it while the other parties refuse to make any change to this particular clause. 

The next key date to rectify the agreement is May 12. 

Oil has mainly traded sideways in the last 6 days. The market is for now not that concerned that issues from the Iranian deal would lead to an oil supply disruption. 

Trump seems open to negotiate on the Iranian deal, however, John Bolton, his national security advisor and Mike Pompeo, secretary of state strongly oppose the deal. Their influence will largely weigh on the US President’s decision. 

Meanwhile, earlier in the day, the International Energy Agency reported a build of 2.170 million barrels in crude inventories, against a fall of -2.043 million barrel forecasted. The potentially bearish news saw WTI spike down 60 cents but quickly recouped its losses. 

WTI levels to watch:

The main trend is bullish. Supports are seen at 67.30 and 66.55 supply levels while resistances are priced in at 68.30 pivot and the 69.00 figure.