Oil holds near pre-virus high after rallying on tighter market
Oil was steady near the highest level in more than a year after rallying on signs the global market is tightening and demand is improving.
Futures in New York traded near $58 a barrel after climbing 11% over the past six sessions as prices extended a robust recovery from the depths of the Covid-19 pandemic. Trafigura Group sees oil moving even higher as refiners increase processing to meet higher product demand amid tight crude supplies.
While the rally has recently gained momentum, one technical indicator is signaling oil is overbought and due for a correction, and top traders Vitol SA and Gunvor Group Ltd. have expressed caution about the surge in prices.
