Oil Price Eyes 2021 High as RSI Pushes Toward Overbought Territory

Oil Price Eyes 2021 High as RSI Pushes Toward Overbought Territory

The price of oil fills the price gap from November as it climbs to a fresh monthly high ($83.10), and a move above 70 in the Relative Strength Index (RSI) is likely to be accompanied by higher crude prices like the behavior seen during the previous year.

Advertisement Oil Price Eyes 2021 High as RSI Pushes Toward Overbought Territory

The price of oil trades extends the advance from earlier this week following a larger-than-expected decline in US inventories, and crude appears to be on track to test the 2021 high ($85.41) as it clears the opening range for January.

Current market conditions may keep the price of oil afloat over the coming days as US stockpiles narrow for seven consecutive weeks, with inventories falling 4.553M in the week ending January 7 versus forecasts for a 1.904M decline. The development may keep the Organization of Petroleum Exporting Countries (OPEC) on a preset course as the group remains in no rush to push oil output towards pre-pandemic levels, and it remains to