LONDON:Oil prices slipped over 1% on Tuesday after surging nearly 2% the previous session, as traders monitored developments in Ukraine and potential disruptions to Russian fuel supplies.
Brent crude fell $1.08, or 1.57%, to $67.72 a barrel by 1040 GMT, after hitting its highest level since early August. West Texas Intermediate (WTI) dropped $1.13, or 1.74%, to $63.67.
“The modest setback today is due to risk aversion, with equity markets trading lower,” said UBS analyst Giovanni Staunovo. He added that geopolitical factors remain critical, particularly potential US-Russia developments.
Monday’s rally was driven by supply risks following Ukrainian strikes on Russian energy infrastructure and the possibility of further US sanctions on Russian oil. Attacks on Ukrainian gas and power facilities have disrupted Moscow’s oil processing and exports, causing gasoline shortages in parts of Russia.
US President Donald Trump renewed his threat to impose sanctions on Russia if there is no progress toward a peace deal within two weeks. Meanwhile, US and Russian officials reportedly discussed energy deals during recent peace negotiations.
“Given the uncertainties from the Ukraine conflict and tariff issues, investors are hesitant to commit to a direction for the long term,” said PVM Oil Associates analyst Tamas Varga. He noted that Brent prices may remain within a $65–$74 trading range in the medium term.
Looming US tariffs on India for its continued Russian oil purchases also weigh on the market. India is the third-largest buyer of Russian crude, and potential duties could reach up to 50%, among the highest imposed by Washington.
— Reuters
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