An excavator vehicle, manufactured by Doosan Group, drills into frozen earth during pipe laying at the Russkoye heavy crude oil field. (Photographer: Andrey Rudakov/Bloomberg)

No Love for Oil as Technicals Point to Oversold Commodity: Chart

(Bloomberg) -- A little sweetening may be in store for the oil market. A technical indicator shows that a price rise could be ahead for West Texas Intermediate crude futures, which have been holding below $60 a barrel. The U.S. benchmark’s 14-day relative strength index has been clinging close to 30, a level that signals the commodity is oversold. “A more reasonable price is north of $60 just given the market tightness,” Matt Sallee, who helps manage $16 billion in oil-related assets at Tortoise Capital Advisors LLC, said by telephone.

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