West Texas Intermediate crude traded near the lowest price in two days as a technical indicator showed that recent gains may be unsustainable.
Futures were little changed in New York after dropping yesterday for the first time in three days as the relative strength index showed prices have advanced too quickly. U.S. crude stockpiles fell by 2.6 million barrels last week, figures from the American Petroleum Institute show, according to a person familiar with the data. A government report today will probably show a drop of 2 million, a Bloomberg survey shows.
WTI for August delivery was at $105.76 a barrel, down 24 cents, in electronic trading on the New York Mercantile Exchange at 9:17 a.m. Sydney time. The volume of all futures traded was 74 percent below the 100-day average. The contract fell 32 cents yesterday to $106, the lowest closing price since July 12.
Brent for August settlement expired yesterday and gained 31 cents to $109.40 a barrel on the London-based ICE Futures Europe exchange. The more-active September futures climbed 6 cents to $108.14. The front-month European benchmark grade ended the session at a premium of $3.40 to WTI futures.
WTI’s 14-day relative strength index closed above 70 for the eighth day yesterday, data compiled by Bloomberg shows. Readings about that level tend to trigger sell contracts because they indicate the market is overbought. The RSI is at about 69 today.