Oil held its gain after closing at the highest level since October as an escalation of geopolitical conflicts in Libya and Iran belied technical indicators suggesting the rally is overdone.
Futures were steady in New York after gaining 3.7 percent over the previous two sessions. Fighter jets bombed the Tripoli airport in OPEC producer Libyaand U.S. President Donald Trump said he would designate Iran’s Revolutionary Guard a terrorist group. The 14-day relative strength index for West Texas Intermediate futures was at 77, above the 70 level that signals its in overbought territory.
WTI declined 3 cents to $64.37 a barrel on the New York Mercantile Exchange as of 9:57 a.m. in Singapore. It rose 0.6 percent to $64.77 earlier after advancing 2.1 percent to settle at $64.40 on Monday, the highest closing level since Oct. 31.
Brent for June settlement fell 14 cents to $70.96 a barrel on the London-based ICE Futures Europe exchange. The contract gained 1.1 percent to settle at $71.10 on Monday. The global benchmark crude was at a premium of $6.67 to WTI for the same month.
Source : Bloomberg