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.” Click Read More below for additional detail.
Saudi Arabia’s oil minister cast fresh doubt on whether that production-cut agreement would be reached by the Organization of the Petroleum Exporting Countries, plus Russia and other producers, who are meeting in Vienna Thursday, the Wall Street Journal reported, citing to news reports from the region.
“According to [Saudi Minister Khalid] al-Falih, it is premature to say whether OPEC and the non-OPEC countries — including Russia — that will be attending the meeting will reach any such agreement,” said Commerzbank commodities analysts in a note, citing those reports.