Oil Drops For 3rd Day On EU Hailing “Constructive” Iran Response To JCPOA Text

Oil prices were hammered for a third consecutive session Monday on the headline that the EU sees Iran’s reply to a draft ‘final text’ of a restored JCPOA nuclear deal as “constructive”. 

WTI Crude was again pushed below $89 a barrel before quickly rebounding. This after Tehran submitted its formal response at the last hour before a midnight deadline Monday. 

“We are studying it and are consulting with the other JCPOA [nuclear accord] participants and the US on the way ahead,” an EU spokesperson said further of its response.

Hours before this on Monday Iran’s foreign minister Hossein Amirabdollahian said that while his country is willing to show compromise, it remains that before signing the final agreement, “In order to take the final step, the US must show flexibility.”

But he added at a moment international correspondents have been waiting hourly for something definitive that thare are three remaining “logical” concerns which which have to be addressed before signing, according to FT.

The Tuesday EU statement of a “constructive” Iranian response comes immediately on the heels of hopes dimming given the State Department’s Ned Price saying Monday that Iran must “drop further unacceptable demands that go beyond the scope of the JCPOA,” given as he explained: “We have long called these demands extraneous.”

Iran Sends EU Nuclear Deal Response and Signals Pact Is Near

-Tehran expects to hear back from negotiators in next two days
-Oil falls as Iran accord speculation, Chinese demand weighhttps://t.co/BOaHIhhUJm via @bpolitics @RcShahla @golnarM @pat_syk pic.twitter.com/xvab4WiWMV

— Robert Jameson (@rhjameson) August 15, 2022

Tuesday morning the US side too confirmed that “We have received Iran’s comments through the EU and are studying them. We are sharing our views with the EU,” according to at State Dept. statement.

Finally, we note that Mohammad Marandi – one of Tehran’s negotiating team advisors – stated that, “I can’t say that there will be a deal, but we’re closer than we’ve been before.”

We are sure – just like with the FBI’s raid on Trump’s home – that President Biden is not following every tick lower in crude as every JCPOA headline hits and the algos decide to sell on the same news.