Crude Slides Nearly 9% as Traders Bet on Return of Iranian Oil

AI Summary

WTI crude oil prices plunged nearly 9% over the week after the US and Iran reached a breakthrough agreement. Traders removed geopolitical risk premiums as they anticipated increased Iranian oil supply.

August WTI crude oil futures posted a steep decline during the week ending June 19 as traders aggressively removed geopolitical risk premium from the market following a breakthrough agreement between the United States and Iran. The contract traded between a high of $81.00 and a low of $72.83 before settling at $75.22, down $7.22, or 8.73%, from the previous week's close. The selloff extended throughout most of the week as traders shifted their focus from fears of supply disruption in the Persian Gulf to the prospect of additional Iranian barrels…