US Signs Deal with Iran, Trump's Allies Unhappy

The news strengthens expectations of increased supply following the US signing a deal with Iran, which could put pressure on oil prices. Technical indicators support this view: the RSI at 41.7 is near the sell zone, the MACD is below the signal line and negative, and the price is below both the 20-day and 50-day moving averages. The 2.5% decline in the last 24 hours indicates continued selling pressure. While the short-term downtrend is likely to persist, the market has not yet entered oversold territory, so some buying on dips may occur.

The news is creating downward pressure on WTI amid expectations that a US-Iran agreement could increase oil supply. Technical indicators also support this view: the RSI at 38.7 is near oversold territory but momentum remains weak, while the MACD is below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages, confirming a short-term bearish trend. However, the downside may be limited as the deal could take time to implement and dissatisfaction among Trump allies creates uncertainty.

The news suggests that the agreement with Iran could reduce uncertainty over oil supply and lower the geopolitical risk premium. However, dissatisfaction among Trump allies indicates potential difficulties in implementing the deal. Technically, the RSI is approaching oversold territory at 34, and the MACD has started to rise above the signal line, offering short-term recovery potential. Although the price remains below the SMA20, given the speed and volume of the decline, some upward correction can be expected. Nevertheless, the ultimate impact of the deal and political reactions remain uncertain, limiting upside expectations.

News of a deal with Iran could weigh on oil prices due to reduced geopolitical risks and expectations of potential supply increases. However, CVX shares have fallen 5.3% in the last 24 hours, with the RSI entering oversold territory at 27. Although the MACD remains below the signal line, the narrowing gap suggests selling pressure may be easing. A short-term technical rebound is highly possible, but details of the deal and reactions from Trump allies could introduce uncertainty.