Oil struggles to regain upside impetus
On the geopolitical front, tensions between the US and Iran persist. Over the weekend, Iran announced it had begun enriching uranium past the previous limit of 3.67%. The level of enrichment then surpassed 4.5% on Monday. Trump has issued a warning to Iran after the country moved to increase uranium enrichment beyond the purity threshold. All this could lead to new sanctions against Tehran and fuel worries about supply disruptions. This in turn may support oil prices down the road.
Technically, Brent needs to challenge the $64.50 area and target the $65 threshold once again so that the downside pressure to ease. In the short term, market will focus on stockpiles data from the US as well as signals from the . The FOMC meeting minutes is due on Wednesday.