Oil prices suffered losses in early Asian trading on Tuesday, as concerns about the outlook for global oil demand overshadowed geopolitical tension in the Middle East and other concerns about supplies in the wake of an attack on a Russian fuel export terminal over the weekend.
Price action
By 0125 GMT, Brent crude futures fell 14 cents, or 0.2 percent, to $79.92 per barrel, while US West Texas Intermediate crude futures fell ten cents, or 0.1 percent, to $74.66 per barrel.
The two crude oil prices rose by about two percent on Monday, as a Ukrainian drone attack on a fuel export station belonging to the Novatek Ust Luga company raised concerns about supplies and thus higher prices. Analysts expect that Novatek will largely resume operations there within weeks.
Analysts from ANZ Research said in a report that while the loading docks at the terminal were damaged, briefly affecting exports, the move raises the possibility of the Russian-Ukrainian war moving to a new phase, with both sides targeting key energy infrastructure.
The geopolitical tension was overshadowed by continuing concerns about China's faltering economic recovery, which exacerbated concerns about global oil demand given that the Asian giant is the world's largest importer of crude oil.
In the Middle East, the United States called on Israel to protect innocent people in hospitals, medical staff, and patients, while Israeli forces stormed a hospital and placed another under siege during their advance deep into Khan Yunis in Gaza.
American and British forces also carried out a new round of strikes targeting an underground Houthi storage site and missile and surveillance capabilities used by the Houthi group in Yemen.
The attacks launched by the Houthis on ships in and around the Red Sea region disrupted global shipping traffic and raised fears of inflation. The group says its attacks come in solidarity with the Palestinians at a time when Israel is bombing Gaza.
