Oil pulled back from recent multi-year highs after technical indicators showed crude rallied too far too fast.
Futures in New York fell toward $64 a barrel on Tuesday in choppy trading, following a surge Monday to the highest intraday level since 2018 after an attack on a major Saudi Arabian crude export terminal. Prices rose above the Upper Bollinger band during the last three sessions, signaling a pullback was in store. Meanwhile, the U.S. government expects domestic crude production to rise drillers take advantage of oil’s price recovery.
Crude’s rally “just kept pushing and pushing and pushing,” said Edward Moya, senior market analyst at Oanda Corp. “Then we had the OPEC surprise and the Saudi attack, triggering the last key surge where now a lot of the recovery and demand expectations due to the vaccines’ success has already been priced in.”
- West Texas Intermediate for April delivery fell $1.04 to settle at $64.01 a barrel
- Brent for May settlement declined 72 cents to end the session at $67.52 a barrel
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