Oil Pares Gains With Crude Overbought as U.S. Supplies Slide
- Technical indicators show oil may be due for a pullback
- U.S. crude inventories are at the lowest since March 2020
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Oil pared gains with technical indicators showing the commodity is overbought, while traders assessed depleting U.S. stockpiles.
Futures in New York closed 0.3% higher on Wednesday with West Texas Intermediate’s 14-day Relative Strength Index clinging near 70, a level that signals oil is due for a pullback. Meanwhile, a U.S. government report earlier showed crude supplies, gasoline inventories and stockpiles at the nation’s largest storage hub at Cushing, Oklahoma, all tumbled last week, reinforcing the expectation of limited supply during the summer driving season.