CRUDE OIL

Iran-P5+1 nuclear agreement was to come into force on Monday this week

• The six-month agreement by which Iran will scale back its nuclear program in return for $6-7B worth of sanctions relief was supposed to start today
• Shortly afterwards, Iran and the P5+1 world powers will then begin talks over a final deal.
• There are a lot of stumbling blocks in existence, including an Iranian parliamentary bill that calls for the country to enrich uranium up to 60%. In the U.S., there are proposals in Congress to stiffen the sanctions against the country, although President Obama has pledged to veto any such measures while negotiations are taking place.
• News of the implementation of the deal follows a report that Iran is in talks with Russia for the latter country to receive 500,000 bpd of oil from Iran in return for equipment and other goods.

Crude oil broke out of its long-term uptrend and bounces have been very shallow. Break of 91.30 low might see it head much lower as supply is forecasted by OPEC to be bullish this year.  Personally I am looking for a decent bounce to sell into or sell into a clear break.