At this point, the market is not ready to believe that a comprehensive deal between U.S. and Iran is around the corner. That said, traders are not ready to increase their bullish bets.
Traders also focused on the visit of President Trump’s envoy, Steve Witkoff, to Russia’s Saint-Petersburg. Russia’s President Putin said that the country was ready to resume negotiations with Ukraine and U.S. It remains to be seen whether Russia and Ukraine are ready for serious discussions of a potential peace deal, but both sides indicated they were ready to talk. The potential peace deal would be a bearish catalyst for oil markets, but traders should note that Russia and Ukraine have sometimes held talks in the last five years, but these talks yielded no results.