Oil prices paused their recent upward momentum on Tuesday, experiencing a slight pullback after surging more than 7 percent over the preceding three sessions. This latest advance was driven by concerns over supply, prompted by fears of a wider geopolitical conflict in the Middle East and the shutdown of Libya’s oil fields.
Brent crude futures declined by 32 cents, or 0.39 percent, to settle at $81.11 per barrel as of 0154 GMT. Similarly, U.S. West Texas Intermediate (WTI) crude futures dipped by 36 cents, or 0.46 percent, to close at $77.06 per barrel.
The oil markets are in the process of retracing some of their sharp gains recorded over the previous three sessions. These gains were fueled by expectations of interest rate cuts in the United States, which could potentially boost fuel demand, as well as the prospect of an escalation in Middle East tensions potentially disrupting supply from the key oil-producing region. Additionally, the shutdown of Libyan oil fields contributed to the recent price surge.
Over the aforementioned three-session period, WTI gained 7.6 percent, while Brent crude increased by 7 percent.
The Libyan closures could potentially affect up to 1.17 million barrels per day of output from the North African country, based on the latest data from a Reuters survey of production by the Organization of the Petroleum Exporting Countries (OPEC) in July.
For more news on markets, click here.
