Oil Gains as Biggest Monthly Loss in a Year Considered Excessive

Prices rose as much as 1.5 percent in New York on Monday. Still, summer demand for driving fuels should whittle away excessive inventories, according to Swedish bank SEB AB. Crude’s 14-day relative strength index dipped below 30 last week, a sign that prices had collapsed very quickly.

“There is currently no headline bullish driver pushing it higher,” said Bjarne Schieldrop, chief commodities analyst at SEB AB in Oslo. Prices are instead “rebounding on expectations for a tightening third quarter” while “technical indicators pointed to oversold territory.”

WTI for August delivery climbed as much as 64 cents to $43.65 a barrel on the New York Mercantile Exchange, and was at $43.48 at 10:12 a.m. in London. Total volume traded was about 19 percent above the 100-day average. Prices are down about 10 percent this month.

Brent for August settlement gained as much as 70 cents, or 1.5 percent, to $46.24 a barrel on the London-based ICE Futures Europe exchange. Front-month prices lost 3.9 percent last week. The global benchmark crude traded at a premium of $2.54 to WTI.
more at:  https://www.bloomberg.com/news/articles/2017-06-25/oil-trades-near-43-after-fifth-weekly-loss-as-drillers-add-rigs

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