Oil Rally Takes Breather With Israel to Pull Some Gaza Troops
- Brent call options trading surged last week on political risks
- Global benchmark retreats Monday, falling below key $90 level
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Oil dropped below $90 a barrel after Israel said it would remove some troops from Gaza, with crude’s recent rally now facing technical resistance as geopolitical friction shows signs of easing.
Global benchmark Brent rallied to a five-month high last week on escalating tensions in the Middle East and supply shocks, raising the prospect of the global benchmark reaching triple figures. But Brent surged into overbought territory on the 9-day relative strength index, signaling prices are poised to fall. Meanwhile, algorithms for crude futures have reached their maximum long positions, according to traders.