• Crude Oil corrects sharply lower and is already almost 7% down this week on Tuesday. 
• Markets see more moderate comments from Israel’s PM Netanyahu while IEA says oversupply still continues. 
• The US Dollar Index orbits around 103.00, though it faces resistance on the upside after two false breaks. 

Crude Oil sinks lower for a second day in a row on Tuesday after the release of the monthly report from the International Energy Agency (IEA), and, at the time of writing, it loses almost 7% in the week. Easing tension in the Middle East adds to the downward pressure on Oil prices. A piece from the Washington Post on Monday suggested that Israel would limit its targets to only military positions, refraining from targeting Iranian oil facilities. This adds to more losses after the monthly report from the  Organization of the Petroleum Exporting Countries (OPEC) on Monday showed OPEC revising down its demand growth forecast for a third time in a row. With a persistent oversupply and tuned-down geopolitical tensions, a heavy correction is unfolding in Oil’s prices. 

The US Dollar Index (DXY), which tracks the performance of the Greenback against six other currencies, orbits around 103.00 and tries to advance. However, red flags have risen, with the DXY unable to move beyond the resistance level at 103.18 for a second day. Another close below that level and easing geopolitical tensions in the Middle East could lead to a sharp correction in the DXY.