Oil Steady, Supported by Middle East Supply Fears

admin admin | 08-07 16:20

However, buying was capped by a weak demand outlook in China, while a global market recovery from a sell-off on Monday provided support.
Oil prices pared gains in volatile trade on Tuesday as fears of an escalation in the Middle East conflict and a drop in production at Libya's largest oilfield raised the prospect of tight supplies.

However, buying was capped by a weak demand outlook in China, while a global market recovery from a sell-off on Monday provided support.

Brent crude futures were down 9 cents, or 0.12%, to USD 76.21 a barrel, while U.S. West Texas Intermediate crude futures were down 8 cents, or 0.11%, to USD 72.86. Both contracts gained over USD 1 a barrel earlier in the session.

"Despite a rebound in the early session driven by concerns over supply disruptions and rising tensions in the Middle East, crude oil futures could continue their downtrend as market reactions to disappointing U.S. job growth data and weak economic signals from China created a wave of negative sentiment," said Hani Abuagla, senior market analyst at XTB MENA.

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