Oil futures moved lower Tuesday morning as U.S. traders returned from the Presidents Day holiday weekend, while downside was seen limited by continued worries over the Middle East as Iran-backed Houthi rebels continued to attack cargo ships.
Price moves
-
West Texas Intermediate crude for March delivery
CL.1,
-1.16% CLH24,
-1.16%
fell 32 cents, or 0.5%, at $78.75 a barrel on the New York Mercantile Exchange. -
April WTI
CL00,
-1.54% CLJ24,
-1.54% ,
the more actively traded contract, was off $1, or 1.4%, at $77.37 a barrel. WTI futures didn’t settle Monday due to the holiday, but closed Friday at the highest since Nov. 6 based on the front-month contract. -
April Brent crude
BRN00,
+0.24% BRNJ24,
+0.24% ,
the global benchmark, was off 96 cents, or 1.2%, at $82.60 a barrel. -
March gasoline
RBH24,
-1.61%
shed 1.7% to $2.30 a gallon, while March heating oil
HOH24,
-2.51%
lost 1.3% to $2.72 a gallon. -
Natural gas for March delivery
NGH24,
-1.37%
fell 1.7% to $1.58 per million British thermal units.
Market drivers
U.S. crude-oil futures were hovering around their three-month high on Tuesday morning as tensions continued to escalate in the Middle East while various countries were increasing efforts to secure a ceasefire between Israel and Hamas in Gaza.
Yemen’s Houthi militants said they attacked the Rubymar cargo vessel in the Gulf of Aden, news reports said. The vessel was seen at risk of sinking. A U.S.-led coalition has led a number of airstrikes against Houthi targets in response for drone and missile attacks in the region, which have forced shippers to avoid the Red Sea. The Houthis vowed to continue their attacks.
March WTI crude expires Tuesday, which means there could be volatile price action as traders scramble to exit positions in the prompt month, said StoneX’s Kansas City energy team, led by Alex Hodes, in a Tuesday client note.
Market participants may also show renewed concern toward potential supply disruptions, said Ricardo Evangelista, senior analyst at ActivTrades, in a note. “With concerns regarding demand gradually waning and geopolitical tensions persisting, there is potential for further escalations in oil prices on the horizon,” he said.
Elsewhere, China on Tuesday made its largest ever cut to mortgage rates, as authorities attempt to support the country’s struggling property sector.
Last week, U.S. crude futures settled at the highest level since early November after Israel launched strikes in Lebanon and threatened to invade Gaza’s southernmost city of Rafah if the remaining hostages are not released by Hamas. Meanwhile, investors seemed to largely shake off concerns about a batch of hotter-than-expected January inflation data and a bearish oil-demand growth forecast from the International Energy Agency.
Source link
