Oil Holds at Yearly Highs as Technical Levels Give Traders Pause
- Oil hovers around overbought territory, technical gauges show
- Europe’s diesel benchmark soars again amid Russian curtailment
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Oil steadied near its highs of the year after rallying about 10% in recent weeks, with technical indicators that suggest its gains may be overdone sapping the benefit of risk-on sentiment in broader markets.
West Texas Intermediate edged lower to settle near $87 a barrel after a 2.3% advance last week. Oil has surged by almost $20 a barrel since mid-June on supply curbs from Saudi Arabia and Russia, which have now been extended through the end of the year. Traders are bracing for a potential pullback as technical gauges, including the relative strength index, show futures remain near overbought territory after a renewed surge over the past two and a half weeks.