Oil prices have stalled in recent trading, falling in Asian trade on Tuesday after rising more than 7 percent in the previous three sessions on supply concerns over a widening conflict in the Middle East and the shutdown of Libyan oil fields.
price movement
Brent crude futures were down 32 cents, or 0.39 percent, at $81.11 a barrel by 0154 GMT, while U.S. West Texas Intermediate (WTI) crude futures were down 36 cents, or 0.46 percent, at $77.06 a barrel.
The decline in oil markets comes after big gains in the previous three sessions, supported by expectations of a cut in US interest rates, which could boost demand for fuel, and military attacks between Israel and Hezbollah in Lebanon earlier in the week, which threaten to widen the conflict in the Middle East, a region of great importance for crude production, which could disrupt supplies, and the closure of fields in Libya.
During that period, West Texas Intermediate crude rose 7.6 percent and Brent rose 7 percent.
Markets remain on edge as skirmishes between Israel and Hezbollah escalate... The risk of oil supply disruption has become real after Libya's parliament said it would halt all oil production and exports as the political conflict escalates, analysts at ANZ said in a note.
The political dispute could affect up to 1.17 million barrels per day of output from the country, according to data from Reuters' latest survey of OPEC production in July.
Oil also received support from the escalation of the conflict between Israel and Hezbollah, amid a large exchange of rocket fire between them in an attempt by Hezbollah to respond to the killing of a senior commander last month.
