Oil Prices Dip After Two Week High
Oil Prices Slip After Hitting Two-Week Highs on Supply Concerns
SINGAPORE – Oil prices edged lower in early Asian trading on Tuesday, after rallying to their highest levels in more than two weeks a day earlier amid renewed concerns over supply disruptions from the Russia-Ukraine conflict.
Brent crude futures slipped 16 cents, or 0.23%, to $68.64 a barrel at 0005 GMT, while U.S. West Texas Intermediate (WTI) crude fell by the same margin, down 0.25% at $64.64.
Both benchmarks surged on Monday, with WTI futures breaking above the key 100-day moving average, signaling potential momentum for further gains.
“The risks for crude oil prices appear tilted toward further gains, particularly if the price sustains a move above the $64–$65 resistance level,” analysts at IG wrote in a note.
The recent rally came as Ukraine targeted Russian energy infrastructure, sparking fears of supply shortages. The attacks disrupted Moscow’s oil processing and exports, caused localized gasoline shortages inside Russia, and were seen as retaliation for Russia’s continued military advances and strikes on Ukraine’s power facilities.
Adding to the uncertainty, U.S. President Donald Trump reiterated on Monday that Washington is prepared to impose additional sanctions on Moscow if no progress is made toward a peace deal within two weeks.
Barclays analysts noted that oil remains range-bound, caught between geopolitical tensions and relatively firm market fundamentals.
Meanwhile, traders are awaiting fresh U.S. inventory data from the American Petroleum Institute (API), due later in the day. Forecasts point to a drawdown in crude and gasoline stocks, though distillate inventories may show a slight build.
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