Oil down on Tuesday

Oil prices declined on Tuesday after a nearly 2 per cent rise a day earlier, amid a broader risk-off sentiment in financial markets as traders monitored escalating tensions between Israel and Iran. Brent crude fell below $74 a barrel, while West Texas Intermediate (WTI) neared $70.

Oil markets have fluctuated this month, with Brent trading in an $11 range due to Middle East unrest and China’s growth-boosting stimulus measures. Despite this, concerns about a potential surplus in global oil supplies loom. Brent’s prompt spread — the difference between its two nearest contracts — has narrowed, indicating easing physical market tightness, while US crude stockpiles at Cushing have risen for four consecutive weeks.

Attribution: Bloomberg

Subediting: M. S. Salama