Crude oil closes: weighing the prospects for Iran nuclear deal and OPEC production cuts Crude oil closed sharply lower

News on August 26, traders weighed the prospects of the Iran nuclear deal and OPEC production cuts, crude oil futures fell back to close lower
after two consecutive days of gains.

October futures for West Texas Intermediate crude on the New York Mercantile Exchange fell $2.
37, or 2.
5 percent
, to settle at $92.
52 a barrel.
ICE Futures Europe futures for October Brent crude oil fell $1.
88, or 1.
9 percent
, to $99.
34 a barrel.
Dow Jones market data showed that Brent crude and West Texas Intermediate hit their highest settlement prices
since July 29 on Wednesday.

September gasoline closed at $2.
8121 a gallon, up 0.
4%; September heating oil closed at $3.
9491 a gallon, down 1.
6 percent, up 4.
5 percent
on Wednesday.
September natural gas futures rose 0.
5% to $9.
375/MMBtu
.

Naim Aslam, chief market analyst at AvaTrade, said oil traders "only focus on two things.
"
That's the possibility of a nuclear deal on Iran, which could put Iranian oil on the market and, secondly, more importantly, OPEC production
.
”

"There are a lot of rumors in the market that Iran has a high probability of a nuclear deal because the country has apparently dropped some important requirements
in the deal," he said in an updated market report.
The tone of the United States and its European allies seems to be very positive", suggesting that a deal may be reached
.

News reports Wednesday said Iran was assessing the U.
S.
response
to the draft European Union nuclear deal.
But the report also said that the United States rejected all the conditions
attached to Iran's response.

Meanwhile, Saudi Arabia, which plays a key role in OPEC's oil production, has "started discussions about reducing OPEC oil production
," Aslam said.
This addresses traders' core concerns that Iran's oil could destabilize
the oil supply and demand curve.
”

OPEC and its allies, collectively known as OPEC+, plan to hold their next monthly meeting
on September 5.

Colin Smith, Chief Market Strategist, SIA Wealth Management? Ceszynski said that in the case of Federal Reserve Chairman Jerome Smith? Before Powell's speech at the Jackson Hole Economic Symposium on Friday, markets were generally "on the sidelines.
"
This "could indirectly affect commodities, depending on how the dollar reacts
to his speech.
" "

On other fronts of energy trading, natural gas prices showed mild two-way swings
after closing Monday at their highest level in more than 14 years.

Currently, Cieszynski said, gas "got a hole punched before Nord Stream maintenance shut down and is struggling to get $10
.
" Gazprom said it would shut down the Nord Stream gas pipeline for three days starting Aug.
31 for maintenance
.

On Thursday, the U.
S.
Energy Information Administration reported that U.
S.
domestic natural gas supplies increased by 60 billion cubic feet
in the week ending Aug.
12.
That's higher than the average increase of 51 billion cubic feet
predicted by analysts in the S&P Global Commodity Watch survey.