Oil drops below $62 a barrel, failing to build on gains of more than 1% in previous session as analysts say recent rally in prices is overblown LONDON — Oil dropped below $62 a barrel on Wednesday, failing to build on gains of more than 1% in the previous session as analysts said a recent rally in prices was overblown."The lack of follow-through higher yesterday is a worry and there’s plenty of reason to be neutral here and observe carefully," PVM Oil Associates director and technical analyst Robin Bieber said.Oil prices have risen more than 35% since hitting an almost six-year low of $45.19 in January, in a rally fuelled by lower industry spending and falling rig counts in the US.Benchmark Brent crude futures were down 83c at $61.70 by 8.55am GMT, having fallen more than $1 to $61.47 earlier in the session. US crude traded at $52.93 a barrel, down 60c."The contracts will look very fragile and accident-prone if one or two more contracts fail to hold key support."Volumes were signifi...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.