Oil prices fell slightly on Tuesday after rising almost 2% in the previous session, as traders closely monitor developments in the Russian-Ukrainian war in the context of possible disruptions to fuel supplies from the region, UNN reports with reference to Reuters.
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Brent crude fell 32 cents, or 0.5%, to $68.48 a barrel by 04:48 GMT (07:48 Kyiv time), while West Texas Intermediate (WTI) crude also fell 33 cents, or 0.5%, to $64.47.
On Monday, both contracts reached a more than two-week high, with WTI rising above its 100-day moving average.
"The risks to crude oil prices seem to be skewed towards further upside, especially if the price continues to move above the $64-65 resistance level," IG analysts note.
Monday's oil price rally was mainly driven by fears of supply disruptions due to attacks on Russian energy infrastructure, as well as traders' expectations of tighter US sanctions on Russian oil, the publication writes.
These attacks "disrupted the operation of Moscow's oil refining and export systems, led to gasoline shortages in some regions of the Russian Federation, and were a response to Moscow's advance on the front line and attacks on gas and energy facilities in Ukraine," the publication notes.
In a client note on Monday, Barclays said oil prices remained in a narrow range amid geopolitical instability and relatively stable fundamentals.
US President Donald Trump has again threatened to impose sanctions on Russia if no progress is made in reaching a peace agreement within the next two weeks.
Traders will also monitor the consequences of the upcoming US tariffs against India due to continued purchases of Russian oil, said Ole Hansen, head of commodity strategy at Saxo Bank.
Indian exporters are bracing for supply disruptions after the US Department of Homeland Security confirmed that Washington would impose an additional 25% tariff on all Indian goods from Wednesday.
This means that Indian exports will face US tariffs of up to 50% - among the highest imposed by Washington - after Trump announced additional tariffs as punishment for New Delhi's increased purchases of Russian oil in early August.
Traders are awaiting the release of American Petroleum Institute (API) data on US oil inventories later today. Crude oil and gasoline inventories are expected to decline, but distillate inventories may increase.