Oil prices slipped slightly on Tuesday as traders weighed potential supply risks in the Middle East. Brent crude futures fell 25 cents, or 0.4%, to $68.79 a barrel, while U.S. West Texas Intermediate (WTI) declined 23 cents, or 0.4%, to $64.13. The modest pullback followed a strong 1% gain on Monday, driven by heightened attention to regional shipping routes.
About a fifth of global oil passes through key maritime chokepoints in the Middle East, making any disruption a major risk to international supplies. Several major producers in the region export the bulk of their crude through these routes, primarily to Asian markets, keeping traders focused on potential logistical challenges.
Market analysts noted that, despite diplomatic efforts in the region showing cautiously positive progress, uncertainty over supply disruptions and geopolitical tensions has maintained a modest risk premium in oil prices. “Lingering uncertainty over potential escalation or tightening measures has kept a small premium intact,” said Tony Sycamore, an analyst at IG.
Meanwhile, global energy trade dynamics continue to shift. The European Union has proposed extending sanctions on oil coming from Europe to include certain ports in third countries, while India has sourced millions of barrels of crude from West Africa and the Middle East, avoiding European supplies as it pursues trade agreements with the U.S.
