Oil might be under further pressure for the week amid renewed concerns on the Iran nuclear deal. Odds of a possible deal are rising day by day and the US is examining the Iranian response to a “final” accord tabled by EU. President Joe Biden spoke on Sunday with leaders from France, Germany and the UK about reviving a nuclear deal with Iran, which could lead to a surge in supply from the OPEC producer.

A slew of economic data including PMI’s and US GDP are due this week. Any signs of weakness in world’s top economies might further take a toll on oil prices. Slowdown in China due to ongoing power shortages and covid restrictions might further add to the downside.

Dollar index and US treasury yields have been rising ahead of the Jackson hole symposium due this week, on expectations of some hawkish comments from Fed officials amid the backdrop of recent ease in financial conditions, making the Fed’s job tougher. We expect MCX Crude oil September futures to decline towards Rs.6,850 per bbl for the week.