Crude-oil futures haven’t been this overbought since 1990. That doesn’t mean the rally is over.

Crude-oil futures are showing extreme overbought conditions, a scenario not seen since 1990. While historically a precursor to price corrections, this doesn't automatically signal an imminent end to the current rally. Strong underlying demand, geopolitical instability, or production constraints could continue to fuel upward momentum despite technical indicators. Investors should monitor supply-demand fundamentals and geopolitical developments closely, as a sharp reversal remains a significant risk if the technical picture asserts itself.