Oil prices edged lower in early Asian trading on Tuesday as traders took profits following Monday’s surge to a one-month high. The earlier price rally was fuelled by fears of an escalating conflict in the Middle East.
The market’s response comes as fighting in the region intensifies. Iran-backed Hezbollah fired rockets at Haifa, Israel’s third-largest city, whilst Israel appears poised to expand its offensive into Lebanon. This development follows a year after the Hamas attack on Israel that sparked the ongoing war in Gaza.
By 2:00 WAT, Brent crude futures had fallen 23 cents (0.3%) to $80.70 per barrel. U.S. West Texas Intermediate futures also dropped by 20 cents (0.3%) to $76.94 a barrel.
Read also: Nigeria crude oil grades sell above $80 amid geopolitical tension
Both benchmarks had risen over 3% on Monday, reaching their highest levels since late August. This capped off last week’s rally, which saw prices climb by more than 8% – the largest weekly gains in over a year.
The upward trend began after Iran launched a missile barrage on Israel on 1 October. Israel has vowed to retaliate and is considering its options, with Iran’s oil facilities potentially in the crosshairs.
Read also: Oil jumps over $3 a barrel as Middle East conflict stokes supply worry
This ongoing tension in the Middle East continues to keep oil markets on edge, with potential supply disruptions remaining a key concern for traders and analysts alike.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
