Oil prices edged lower on Tuesday, extending the previous session’s decline as traders took profits following a strong rally driven by escalating geopolitical risks in the Middle East.
Brent crude futures fell 0.86% to $114.80 a barrel, while US West Texas Intermediate (WTI) crude declined 0.76% to $101.00, according to the latest market figures.
The decline followed Monday’s settlements, when Brent closed at $115.81 a barrel, down 91 cents or 0.78%, while WTI settled at approximately $101.76.
The latest pullback suggests the market is consolidating after last week’s sharp gains, which pushed both benchmarks to multi-month highs amid concerns over potential disruptions to global oil supplies.
Middle East Tensions Keep Oil Prices Elevated
Despite Tuesday’s decline, oil prices remain above key psychological levels, with Brent trading above $110 a barrel and WTI holding above $100.
Market sentiment has been shaped by Houthi attacks on Saudi targets over the previous weekend, renewing concerns about the security of energy infrastructure and shipping routes in the Middle East.
However, the absence of major new supply disruptions on Tuesday appears to have eased some of the immediate upward pressure on prices, allowing traders to lock in profits after the recent rally.
The direction of oil prices will depend largely on whether geopolitical tensions translate into sustained supply disruptions or remain a source of risk premium in the market.
A further escalation involving Saudi energy infrastructure or key shipping routes could push prices higher, while a reduction in immediate supply concerns may encourage additional profit-taking.
