WTI crude oil reaches fresh yearly highs after Trump announces Iran decision on Tuesday

• Trump will announce its decision on the Iranian nuclear deal on Tuesday at 18:00 GMT. 
• WTI crude oil broke yearly high on Monday and traded as high as $70.83 a barrel.

WTI crude oil is trading at about $69.90 a barrel, up 0.20% on Monday’s trading as WTI is reaching new yearly highs. 

Trump tweeted: “I will be announcing my decision on the Iran Deal tomorrow from the White House at 2:00 pm (18:00 GMT) .” 

The bull move on crude was lead by fears that the US will not renew the current Iranian nuclear deal and will instead replace it with a harsher version. Since Iran is one the largest oil producer, a diplomatic conflict with Iran could lead to a potential supply cut of up to 300,000 barrels a day according to analysts.

On a larger scale, WTI is trending higher on several factors. The OPEC and non-OPEC agreement to cut production by 1.8 million barrels a day is artificially cutting oil supply. The deal entered into effect on January 1, 2017, and is expected to last until the end of 2018. Additionally, oil demand is forecast to grow to 99.3 million barrels a day in 2018 from 97.8 million barrel a day the year earlier. Venezuela declining output is also underpinning oil prices. 

WTI crude oil 4-hour chart

The trend is bullish and resistances are seen at 70.83 (recent high) and at the 71.00 psychological level. To the downside, the 69.55 previous swing high and the 69.00 psychological level should act as support.