Oil News: Crude Oil Analysis: Hormuz Deal Sends Futures Into Key Value Zone
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Key Points:
- WTI crude oil futures plunged over 5%, falling below $80 as a U.S.-Iran deal erased months of war premium.
- Conflicting U.S. and Iranian claims on Hormuz terms raise uncertainty over crude oil's near-term outlook.
- Tight inventories and persistent backwardation suggest physical crude supplies remain constrained despite the selloff.
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July WTI Crude Oil Futures dropped below $80 a barrel Monday for the first time since March. A preliminary U.S.-Iran deal to reopen the Strait of Hormuz hit the wire and crude collapsed more than 5% in a single session. Months of war premium came out in hours. The question now is whether the barrels actually show up or whether this selloff just handed buyers the value zone the charts have been pointing at for weeks. Keep reading for what the charts are saying and what is really driving this move.