Oil edged lower as crude’s rally on a tightening global supply outlook lost some momentum amid a broader market decline.
Futures in New York fell as much as 0.9 per cent on Thursday with US equities weakening amid concerns that markets could soon face accelerating inflation. Meanwhile, technical indicators show crude hovering in overbought territory after skyrocketing to one-year highs this week.
“Oil has had an incredible run,” so prices were due for a correction, said Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago. “But the tailwinds of oil going up are still there, so any kind of correction will likely be short-lived.”
