Oil Slides To 3-Month Lows Amid Iran Progress And Renewed Supply Flow

Energy markets are moving modestly lower again Tuesday, with crude oil prices setting fresh 3 month lows following signs of progress in negotiations with Iran, and reports of increased shipping through the Strait of Hormuz seem to be enough for now to .

Today’s selling comes despite a fresh round of attacks in Lebanon, and Iran’s chief negotiator insisting the country intends to retain control over the Strait of Hormuz.

The U.S. treasury issued a broad waiver on sanctions for Iranian oil and refined products Monday, making good on that portion of the 14 point truce agreement. The waiver on previously set sanctions lasts 60 days, through August 21.

WTI crude futures are trading below their 200 day moving average for the first time since February (prior to the war breaking out) and if they settle below that layer of support, they look poised to make a run at the $67 range, which is where the chart gapped when the war broke out and prices spiked. ULSD futures look similarly vulnerable on the charts as they hover near 3 month lows, and threated another 15-25 cents of downside if buyers don’t step in soon. RBOB gasoline futures meanwhile look more neutral after bouncing 20 cents from the lows set last week.

TotalEnergies is going to need a full week to restore operations at its 238mb/day Port Arthur TX refinery after a lightning strike knocked the facility offline this weekend.