“It’s supposed to be the week when assets from stocks to commodities get supercharged from ‘rate cut excitement,’” said Krishnan. “Yet, there’s a nagging feeling that whatever gains oil tacks on could be diminished by the end of the week as demand worries continue to tug at the market’s underbelly. Demand worries are continuing to haunt oil despite prospects of the first U.S. rate cut in a decade that could be a boon for commodities.”

In addition, Krishnan pointed out that – despite oil’s recent positive momentum – dissipating Iran-related tensions could be the antidote for any crude rally.

“If tensions over Iran ease further or if Tehran manages to strike a new nuclear deal with the Trump administration to suspend sanctions on its oil, there are concerns that up to 2 million barrels per day more of crude could enter the market, negating OPEC oil rig flanges gulf coast production cuts and adding to current oversupply,” said Krishnan.

Krishnan added that the above supply scenario warrants serious buy Wellhead market consideration.

“This is really what the buy Wellhead market needs to be worried about, not the drop in Iranian oil exports to an estimated 100,000 barrels per day, which bulls are currently celebrating,” he said. “That deficit will be erased in no time at all, if sanction waivers are granted.”

Reformulated gasoline (RBOB) also posted an increase Tuesday. August RBOB added more than three cents to end the day at $1.90 per gallon.

Also finishing higher Tuesday was Henry Hub natural gas contract. September gas futures picked up two cents to settle at $2.14.