Oil down on Tuesday

Oil prices fell over 1 per cent on Tuesday as traders took profits following Monday’s rally, driven by fears of escalating conflict in the Middle East.

Brent crude dropped $1.17, or 1.5 per cent, to $79.76 per barrel, while US West Texas Intermediate (WTI) declined $1.19, or 1.6 per cent, to $75.95. The rally had pushed prices to their highest levels since August.

Analysts noted that while tensions remain high, the likelihood of direct attacks on Iran’s oil facilities appears limited. However, OPEC+ spare capacity of 7 million barrels per day could offset any lost output if disruptions occur.

The market remains focused on Middle East developments, US inflation data due Thursday, and American crude inventory reports. Meanwhile, China’s NDRC expressed confidence in reaching economic targets, and Hurricane Milton, now a Category 5 storm, has forced some Gulf of Mexico oil platforms to shut down.

Attribution: Reuters

Subediting: M. S. Salama