Oil prices retreated a touch early on Tuesday after rising more than 2 per cent in the previous session, partly driven by spillover from a pullback in precious metals even as escalating Russia-Ukraine tensions left markets grappling with supply disruption fears.
Brent crude futures for February delivery, which expires on Tuesday, were down 21 cents, or 0.3 per cent, at $61.73 a barrel as of 0150 GMT. The more active March contract was at $61.30, down 19 cents or 0.3 per cent.
US West Texas Intermediate crude eased 20 cents, or 0.3 per cent, at $57.88.
Both contracts settled more than 2 per cent higher in the previous session after Moscow accused Kyiv of targeting President Vladimir Putin’s residence, stoking fears of supply disruptions.
“The selling you are seeing now is probably some spillover weakness generated by the significant correction we saw in precious metals that is bound to impact pretty much every other commodity,” Marex analyst Ed Meir said.
Precious metals retreated sharply on Monday, with silver and platinum falling from record highs, as investors booked profits after recent rallies. [GOL/]
“I think the markets are sensing that a deal is going to be very hard to come by,” Meir said.
Kyiv has dismissed as baseless Russia’s accusation that it was targeting Putin and said it was designed to undermine peace negotiations.
The escalating geopolitical tensions could revive supply disruption fears and pressure oil prices higher.
Traders were also worried about Middle East developments, after President Donald Trump said the United States could support another major strike on Iran were it to resume rebuilding its ballistic missile or nuclear weapons programs.
Trump also warned Palestinian militant group Hamas of severe consequences if it does not disarm, adding he wanted to move to the second phase of the ceasefire deal between Israel and Hamas reached in October after two years of fighting in Gaza.
Looking ahead to other near-term catalysts, Saudi Arabia, the world’s biggest oil exporter, is expected to lower the February price for its flagship Arab Light crude for Asian buyers for a third month, mirroring declines in the spot market due to ample supplies, sources said.
“Price direction is likely lower going into Q1 of 2026 as there is a growing oil glut on the market,” Meir added.
