Oil prices eased slightly on Tuesday after rising more than 2% in the previous session. The pullback came partly due to the drop in precious metals prices, even as concerns about supply disruptions continued due to escalating Russia-Ukraine tensions.
Brent crude for February delivery, which expires on Tuesday, was down 21 cents, or 0.3%, at $61.73 per barrel. The more active March contract was at $61.30, down 19 cents, or 0.3%.
U.S. West Texas Intermediate crude also fell by 20 cents, or 0.3%, to $57.88 per barrel.
Both oil contracts had surged over 2% in the previous session after Russia accused Ukraine of targeting President Vladimir Putin’s residence, raising fears of supply disruptions.
Analysts pointed out that the current dip was partly due to a drop in precious metals like silver and platinum, which had recently hit record highs. “The weakness is spilling over from the precious metals market,” said Ed Meir, an analyst at Marex.
Despite the tensions, Kyiv rejected Russia’s accusations, calling them false and part of an effort to derail peace talks.
The rising geopolitical tensions could push oil prices higher if supply disruption fears continue. Traders are also closely watching developments in the Middle East, particularly following U.S. President Donald Trump’s warning about potential strikes on Iran if the country resumes its ballistic missile or nuclear programs.
In addition, concerns over the Middle East remain, with Trump warning Palestinian group Hamas of severe consequences if it does not disarm, following the ceasefire deal between Israel and Hamas in October.
Looking ahead, Saudi Arabia, the world’s largest oil exporter, is expected to lower its oil prices for Asian buyers for the third month in a row, reflecting a softer spot market and ample oil supplies.
