In Asian trade on Tuesday, oil prices experienced minimal movement as a rebound rally lost steam. Market participants closely monitor the evolving geopolitical landscape in Russia and the Middle East, seeking insights into potential supply disruptions.
USOIL 4-Hourly Chart
Brent oil futures for April delivery dipped by 0.1% to $77.94 a barrel.
West Texas Intermediate (WTI) crude futures fell by 0.1% to $72.81 a barrel by 20:17 ET (01:17 GMT).
Recent events have intensified concerns over global oil supplies. Strikes by US forces against the Iran-backed Houthi Group in Yemen have escalated tensions in the Middle East, indicating a sustained period of geopolitical unrest. Reports of Ukraine’s drone strikes on a major Russian oil refinery contribute to the overall uncertainty, potentially impacting the export of oil products. The lack of progress in ceasefire negotiations in the Israel-Hamas conflict suggests lingering tensions in the oil-producing region. Houthi threats to vessels in the Red Sea have raised concerns about potential disruptions in oil shipments to Europe and Asia.
Oil prices rose approximately one dollar a barrel on Monday, reflecting concerns about geopolitical tensions affecting global supplies. Analysts highlight the toll on Russian oil supplies due to ongoing attacks and the influence of incremental non-OPEC supply, particularly from the US, on oil markets.
The robust performance of the US dollar has led to a moderation in oil prices. However, indications of economic resilience in the United States offer potential support for demand, helping to mitigate concerns surrounding the global deceleration of demand.
As the week progresses, market attention will be on signals from Federal Reserve officials and Chinese inflation data for January. These insights will be crucial as the oil market navigates through a complex landscape of geopolitical uncertainties and demand-supply dynamics.
