(Bloomberg) -- Oil fell for a fourth straight session, the longest losing streak since early June, driven by algorithmic selling and low summer liquidity.
West Texas Intermediate dropped 1.8% to settle below $77 a barrel. The decline was propelled by commodity trading advisers dumping their bullish positions after futures surpassed both the 50-day and 100-day moving averages, which have acted as support levels. But oil has edged into oversold territory on the 9-day relative strength index, suggesting a reversal may be imminent.
The industry-funded American Petroleum Institute will issue its estimate for weekly shifts in US inventories later Tuesday, followed by a government breakdown on Wednesday. Nationwide crude stockpiles have dropped for the past three weeks, reaching the lowest level since February.
Crude prices remain higher year-to-date, helped by OPEC+ supply cutbacks and expectations for lower US interest rates, perhaps as soon as September. Political risks remain front and center as investors weigh the implications of US President Joe Biden dropping his reelection bid.
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--With assistance from Alex Longley.
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