Oil steadied after the biggest monthly advance since early 2022 as signs of a tighter global crude market were countered by indications the rally may be due for a pause after such a rapid run-up.
West Texas Intermediate was little changed below $82 a barrel after surging 16% in July. The gains, which lifted prices to a three-month high, have been underpinned by signals demand is running ahead of supply after OPEC+ reduced output. In addition, with US inflation cooling, there’s renewed speculation that the world’s biggest economy can avoid a recession.
Still, crude’s climb means that its 14-day relative-strength index has risen to near 70, a level that suggests the market may be overbought in the near term and could face a downward correction. Meanwhile, oil exchange-traded funds have posted their largest week of outflows for more than a year.
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