Following a considerable plunge on Thursday last week due to preliminary agreement reached between Iran and the United States, full lifting of sanctions still faces some issue to be fully agreed and implemented.
Moreover, an additional oil exports from Iran will take time to increase and can not be expected in next months even in case of final agreement.
Recent military actions taken by Saudi Arabia are providing short-term bullish pressures on oil, as the major OPEC producer remains interested in full control of Aden due to sea trade routes around peninsula.
China imports from Iran are set to rise, following a deal with the National Iranian Oil Company about higher condensate purchases. In addition, Saudi Arabia raised its official crude oil selling price for Asian buyers for May, hinting a slight recovery in Asian demand.
We still remain bearish on oil, but short-term spikes may be expected mostly due to geopolitical news.
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