A wild expiration day for the December WTI contract and even a wilder day for the Brent vs. WTI oil spread. Brent initially was selling off over optimism from the talks with Iran surrounding its nuclear program.
Iran deal fails as France has second thoughts about giving Iran too much and getting nothing back in return. At the same time oil products, such as gasoline and ultra-low sulfur diesel, look like they wants to bottom.
The oil complex is becoming more and more convinced that the Iranian negotiations will make progress and as such oil prices declined across the board on Tuesday. Further, skepticism that the U.S. politicians in Washington will not be able to come up with a deal weighted on oil.
It is possible that the U.S. will actually do the unthinkable and defaults on its debt. How come it seems like the talks with Iran over their nuclear program seem to be going better than the talks in Washington?