Commodities

Oil Falls as Technicals Signal Five-Session Rally Is Overdone

  • WTI failed to surpass psychological level of $75 a barrel
  • Prompt spread, relative strength index indicated pullback due
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Oil snapped a five-session rally as key technical markers show gains driven by tightness in global physical crude markets may have gone too far.

West Texas Intermediate fell 0.5% to settle below $74 a barrel, reversing earlier gains after futures were unable to breach a psychological level of $75. WTI’s prompt spread dipped from a near three-month high to 65 cents in a sign of evaporating trader confidence that demand is outstripping supply.