Oil News: Crude Oil Futures Eye Rebound as 40-Year Low Inventory Warns Bears
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Key Points:
- U.S. crude inventories hit their lowest level since 1985, challenging the recent oil market selloff.
- Traders priced in an Iran peace deal, but the agreement remains unsigned and supply risks persist.
- WTI crude oil may be setting up for a rebound as technical indicators approach reversal territory.
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The oil market just experienced its sharpest selloff of the year on news that a peace deal between the United States and Iran could end the conflict and reopen the Strait of Hormuz. Traders dumped barrels as fast as they could on the assumption that Middle East supply disruptions were about to end. But the deal is not signed. The Strait is not open. And while the market was busy pricing in a ceasefire, U.S. crude inventories quietly dropped to their lowest level since March 1985. The question nobody is asking yet is what happens if the peace deal stalls and the physical market is already running on fumes.