Brent crude futures were down 36 cents, or 0.4 per cent, at $81.07 a barrel and U.S. West Texas Intermediate crude futures declined 40 cents, or 0.5 per cent, to $77.02
Oil prices slid slightly on Tuesday after bouncing back more than 7 per cent over the previous three sessions on supply concerns prompted by fears of widening conflict in the Middle East and a potential shutdown of most of Libya’s oil fields.
Brent crude futures were down 36 cents, or 0.4 per cent, at $81.07 a barrel by 1130 GMT. U.S. West Texas Intermediate (WTI) crude futures declined 40 cents, or 0.5 per cent, to $77.02.
After the jump in oil prices on the back of geopolitical risk in the Middle East and a production halt in Libya, market participants are now holding back to assess further developments, according to IG market strategist Yeap Jun Rong.
The 7 per cent gain in Brent and 7.6 per cent rise in West Texas Intermediate in the earlier three sessions bucked a wider downtrend since reaching its 2024 high of $91.17 in April. The downturn was driven by concern over global crude demand, particularly from China and through the summer, which is typically a peak demand period.
Meanwhile, Libya announced the closure of all oil fields, which halted production and exports. Those fields are responsible for almost all the country’s 1.17 million barrels per day of crude output.
There was no confirmation from the government or from National Oil Corp (NOC), which controls the country’s oil resources.
Oil has also been supported by escalation in conflict in the Middle East.
Markets remain on edge as skirmishes between Israel and Hezbollah intensify, ANZ analysts said in a note.
