Crude Holding Onto Its Gains, But Possibly Overbought

Oil prices have held onto most of Monday’s gains and are down only around 0.2% but are off their session lows. WTI is at $81.62, off the low of $81.46. Brent is also lower at $85.22, following a low of $85.05. WTI found support at $81.50 and Brent at $85. The USD index is 0.2% higher.

• Bloomberg is reporting that WTI’s 14-day relative strength index may be pointing to the market being overbought again. Also, ETFs saw their largest outflows last week for over a year.
• The OPEC+ Joint Ministerial Monitoring Committee is going to hold a virtual meeting on Friday to assess the impact output cuts are having so far.
• US API crude and product inventory numbers are released later and given low stock levels and signs the market is tightening, this data is likely to be monitored closely. The official EIA data is published Wednesday.
• Later the Fed’s Goolsbee gives welcoming remarks and US manufacturing PMI/ISM for July, June construction spending and JOLTS job openings all print. There are also European manufacturing PMIs and euro area June unemployment.