Oil prices edged lower on Tuesday, easing after a sharp rally in the previous session as traders monitored developments in the Russia-Ukraine conflict for potential supply disruptions.
Brent crude slipped 32 cents, or 0.5%, to $68.48 per barrel at 0448 GMT, while West Texas Intermediate (WTI) crude dropped 33 cents, or 0.5%, to $64.47 per barrel. Both benchmarks had surged to their highest levels in over two weeks on Monday, with WTI breaking above its 100-day moving average.
Analysts at IG noted that risks for crude prices remain tilted to the upside, especially if WTI holds above the $64–$65 resistance level. Monday’s rally was fueled by concerns that Ukrainian drone strikes on Russian energy facilities could further disrupt supply. These attacks have already affected Moscow’s oil processing and exports, led to localized fuel shortages, and were seen as retaliation for Russia’s intensified strikes on Ukraine’s gas and power infrastructure.
Barclays said in a client note that oil prices remain range-bound, supported by resilient fundamentals despite geopolitical volatility.
Adding to market tension, U.S. President Donald Trump reiterated his warning that Washington will impose new sanctions on Russia within two weeks if no progress is made on peace talks.
Traders are also watching the fallout from upcoming U.S. tariffs on India over its continued purchases of Russian oil. Beginning Wednesday, Indian exports will face an additional 25% levy, raising total tariffs to as high as 50%—among the steepest imposed by Washington. The move has sparked concerns of trade disruptions for Indian exporters.
Later in the day, markets await U.S. inventory data from the American Petroleum Institute (API), with expectations for a drop in crude and gasoline stocks but a potential build in distillates.
