Oil Rally Falters With Crude Market in Overbought Territory
- Inventories at Cushing are close to operational minimums
- Benchmarks’ prompt spreads are in extreme bullish structures
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Oil’s rally to $95 a barrel faltered as investors cashed out and the market settled in overbought territory.
US benchmark crude fell nearly $2 after surging to the highest level in more than a year. While dwindling oil inventories at Cushing, Oklahoma — the delivery point for US futures — have sent key price gauges surging, the rally hit technical resistance with the 14-day relative strength index signaling a correction.