Oil prices edged lower in Asian trading on Tuesday as investors assessed the impact of mounting geopolitical tensions and the prospect of tougher sanctions on Russian energy flows.
As of 21:47 ET (01:47 GMT), Brent Oil Futures expiring in November fell 0.3% to $66.36 per barrel, while West Texas Intermediate (WTI) crude futures also edged down 0.3% to $62.10 per barrel.
Both contracts settled marginally lower on Monday as Iraq’s announcement that it has increased oil exports under an OPEC+ agreement raised oversupply worries.
Traders watch geopolitical tensions in Middle East, Russia
Israeli airstrikes continued to pound Gaza overnight, forcing hospitals to shut down and drawing renewed international criticism, reports showed.
At the United Nations on Monday, a broad coalition of countries backed the formal recognition of a Palestinian state, a step opposed by Israel and the United States.
The diplomatic rift added to uncertainty across the Middle East, a region that accounts for a third of the world’s crude supply.
Meanwhile, Ukraine has intensified drone strikes on Russian energy infrastructure, damaging refineries and forcing the suspension of loadings at a key terminal earlier this month.
The attacks likely highlight the vulnerability of Russia’s export routes, raising questions over whether it can sustain current output levels.
Fresh sanctions against Russia loom
The European Union is preparing a fresh sanctions package aimed at tightening restrictions on Russia’s energy exports.
The measures are expected to target liquefied natural gas imports and penalise intermediaries in third countries that facilitate Russian trade.
Washington has stepped up pressure on allies, urging higher tariffs on goods from China and India in response to their continued purchases of Russian crude.
These steps could strain global supply chains if enforcement proves effective. Despite the geopolitical risks, concerns about global demand continue to cap gains.
Source :
https://www.investing.com/news/commodities-news/oil-prices-edge-down-as-traders-assess-geopolitical-risks-russian-supply-4250275
