Hormuz Agreement Draft Completed: Awaiting Khamenei's Approval

The completion of the draft Hormuz agreement could lead to a reduction in the geopolitical risk premium and put pressure on Brent crude. Technical indicators also support this outlook, with the RSI signaling weakness at 40, the MACD in negative territory, and prices trading below the SMA20 and SMA50. In the short term, selling pressure is likely to persist, but the risk of the agreement not being ratified and the pace of the current decline suggest that downward movement may be limited. Therefore, while the direction is down, the confidence level is maintained at a moderate level.

The completion of the Hormuz Agreement draft strengthens expectations of a reduced geopolitical risk premium and could exert pressure on oil prices. Technical indicators also support this outlook; the RSI is in the weak zone at 39.45, and the price is below both the 20-day and 50-day moving averages. Although the MACD is in negative territory and above the signal line, momentum remains downward. The 2.38% decline over the last 24 hours indicates continued selling pressure. However, the possibility that the agreement may not be approved by Khamenei and the approach to oversold territory in the short term could limit the downside.

The completion of the Hormuz agreement could reduce the geopolitical risk premium on oil supply, potentially putting downward pressure on crude oil prices. This may negatively impact energy company XOM's stock price in the short term. Technical indicators support this outlook, with RSI at 36.6 approaching oversold territory, while MACD is below the signal line and in negative territory. The price is trading below both the 20-day and 50-day moving averages, having lost 3.5% over the last 24 hours. However, confidence levels are maintained at moderate, considering the possibility that the agreement may not be approved by Khamenei and that current selling pressure might be excessive.

The completion of the Hormuz agreement could reduce the geopolitical risk premium on oil supply, potentially pressuring crude oil prices. This may have a short-term negative impact on energy company CVX. Technical indicators support this outlook, with the RSI approaching oversold territory at 30, while the MACD is in negative territory and below the signal line. The price is trading below both the 20-day and 50-day moving averages, with a 3% decline over the last 24 hours. However, the possibility of the deal not being ratified and current oversold conditions may limit the downside.