Oil holds steady on Tuesday

Oil prices held steady as investors assessed rising geopolitical tensions. Brent crude was near $86 a barrel, and West Texas Intermediate (WTI) was below $81.

Brent’s implied volatility rose due to geopolitical risks, including upcoming elections in Iran and France, but remains near a five-year low.

Oil is set for a monthly gain, with time spreads widening in a bullish backwardation, signalling a tightening supply. Traders are watching inflation and economic data for impacts on crude prices.

Other markets show strength. Moreover, money managers made the largest weekly addition in net-bullish bets in ICE gasoil, Europe’s diesel benchmark, and Brent futures and options saw the biggest rise since October.

Attribution: Bloomberg