Brent Oil Rises as Plunge Below $90 May Be Excessive

Brent crude rose in London, paring a second weekly decline, on speculation that its plunge to an 18-month low below $90 a barrel was excessive.

Brent’s 14-day relative strength index, a measure of how quickly prices have risen or dropped, was at 17.4 today. A reading of 30 or less can suggest prices have tumbled too quickly. Brent earlier declined to its lowest since December 2010 after German business confidence fell to the weakest level in more than two years in June, and the Federal Reserve Bank of Philadelphia’s economic index yesterday signaled the biggest contraction in manufacturing in almost a year.