Oil's rally loses steam as crude falls more than 2%
NYMEX crude futures were last trading just over $90 a barrel, down more than 2% on the day, after earlier hitting a September 15 high of $106.75. The energy sector has also slipped more than 5% since its September 15 record close.
24% Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Oil's Rally Losing Some Steam? NYMEX crude futures are still on track to post a solid September gain of more than 5%, which would mark a third straight monthly advance. But beneath the headline strength, a few cracks may be starting to emerge.
75. Yet despite that powerful run, prices failed to clear the May peak, something likely to catch the eye of longer-term chart watchers. September is also shaping up to leave behind a potentially bearish monthly candle, suggesting the rally may be running short of momentum just as bullish sentiment becomes more widespread. Crude was last trading just over $90 a barrel, down more than 2% on the day.
15. A break below the monthly Ichimoku Cloud, which will span roughly $82 to $78 in October, would add weight to a more bearish outlook. 04. 47 area.
48. The energy sector is flashing a similar warning sign. Despite being the S&P 500's best-performing sector this year, up roughly 39% and on pace for its strongest annual gain since 2022, momentum has cooled recently. 9% month-to-date.
From a technical standpoint, that bears watching. In March, energy's 9-month RSI reached its most overbought level since October 2007. Since then, the sector has gone on to notch fresh record highs in both August and September, but momentum has not followed suit. Instead, the RSI peaked well below its March high and is now rolling over, creating a bearish divergence.
Over the past two decades, major energy-sector pullbacks have often been preceded either by this type of divergence or by an RSI breakdown from severely overbought levels. (Terence Gabriel) *** Earlier On Live Markets: Can The Ai Boom Fix The Us Budget Problem? BACK TO THE 70s OR TO PRE-WORLD WAR ONE? CLICK HERE Tech Props Up The Stoxx, Construction Drags Click Here Before The Bell: Rising Yields Keep Europe On Edge, French Operators Fall Click Here Our Products Could End All Human Life, Buy Our Shares Click Here CrudeFutures09292026 SPNY09292026 (Terence Gabriel is a Reuters market analyst.
The views expressed are his own)