Oil prices steadied after rising about 2% on Monday as traders monitored tensions in the Middle East and broader markets were in a cautious mood.
Brent crude prices eased slightly, but remained above $74 a barrel, while WTI crude held near $71. Investors are waiting to see how Israel will respond to Iran over the recent missile attacks, as well as subsequent attacks by groups backed by Tehran. On the other hand, Asian stocks fell after losses in the United States.
Crude oil prices have been volatile this month, with global benchmark Brent trading in a range of more than $11, as conflict in the Middle East has raised the possibility of supply disruptions. Meanwhile, China has supported growth with stimulus, helping to support prices, but investors remain wary that the global oil market could head into a surplus in the coming quarters.
The Brent spot spread — the difference between the two nearest contracts — has narrowed in recent weeks, suggesting market conditions are becoming less severe. The spread was 35 cents a barrel in backwardation, compared with 69 cents about a month ago.
