Oil prices posted a loss Tuesday after a three-session climb, pressured by concerns over the outlook for demand, even as rising tensions in the Middle East and a reported halt in crude output in Libya feed supply worries.
“Oil traders are very much keeping their ears to the ground, as geopolitical tensions are very much anchored in place,” wrote Naeem Aslam, chief investment officer at Zaye Capital Markets, in daily commentary.
Recent tensions between Israel and Hezbollah, however, only pushed oil prices toward a two-week high, and that’s not a significant move, he noted. Therefore, “we can conclude that a greater degree of calm has prevailed, and the significant increase in oil prices that was widely anticipated may not materialize.”
On Tuesday, October West Texas Intermediate crude settled at $75.53 a barrel on the New York Mercantile Exchange, down $1.89, or 2.4%, while October Brent crude on ICE Futures Europe lost $1.88, or 2.3%, to settle at $79.55 a barrel.
