Oil Prices Steady as Geopolitical Tensions Rise and Supply Concerns Persist

PUKMEDIA

Oil prices.

Oil prices were little changed on Tuesday after gaining more than 2 per cent in the previous session, as investors weighed rising geopolitical tensions against expectations of ample global supply.

Brent crude futures for February delivery, which expire on Tuesday, edged down by 2 cents to $61.92 a barrel at 03:14 GMT, while the more actively traded March contract slipped 5 cents to $61.44.
US West Texas Intermediate (WTI) crude eased by 5 cents to $58.03 a barrel.

Both Brent and WTI settled more than 2 per cent higher in the previous session after Russia accused Ukraine of targeting President Vladimir Putin’s residence, raising concerns over potential supply disruptions.

Kyiv has rejected the accusation, describing it as baseless and aimed at undermining peace negotiations. Following a telephone call with President Putin, US President Donald Trump said he was angered by details of the alleged incident, although he reiterated his belief that a peace deal could be close.

The escalation in geopolitical tensions has added uncertainty to the oil market, even as investors continue to monitor developments surrounding potential talks to end the war in Ukraine.

Markets are also focused on the Middle East. Trump said the United States could support another major strike on Iran if Tehran resumes rebuilding its ballistic missile or nuclear weapons programmes. He also warned the Palestinian militant group Hamas of severe consequences if it failed to disarm, while expressing support for moving to the second phase of the ceasefire agreement reached between Israel and Hamas in October, following two years of conflict in Gaza.

Despite heightened geopolitical risks, analysts note that expectations of an oversupplied global oil market persist, which could limit further price gains.



PUKMEDIA