Oil futures fell early Tuesday as US traders prepared to return from the Presidents Day weekend, while downside was limited by lingering concerns over the Middle East as Iran-backed Houthi rebels continue to attack cargo ships.
The price moves
-
West Texas Intermediate crude for March delivery CL.1,
-0.45% CLH24,
-0.45%
Crude oil futures fell 31 cents, or 0.4%, to $78.88 a barrel on the New York Mercantile Exchange. April WTI CL00,
-0.98% kg 24,
-0.98% ,
The most actively traded contract fell 87 cents, or 1.1%, to $77.59 a barrel. WTI futures were not settled on Monday due to the holiday, but closed on Friday at the highest level since November 6 based on the front-month contract. -
Brent crude oil for April BRN00,
-0.81% BRNG 24,
-0.81% ,
The global benchmark fell 79 cents, or 0.9%, to $82.77 a barrel after ending Monday at its highest level since Nov. 6.
Market driving factors
Yemeni Houthi militants said they attacked the Rubimar cargo ship in the Gulf of Aden, news reports said. The ship was seen in danger of sinking. The US-led coalition has led a number of airstrikes against Houthi targets in response to drone and missile attacks in the region, which have forced shipping companies to avoid the Red Sea. The Houthis vowed to continue their attacks.
Market participants may show renewed concern about potential supply disruptions, Ricardo Evangelista, senior analyst at ActivTrades, said in a note.
“With concerns about demand gradually easing and geopolitical tensions continuing, there is potential for further escalation in oil prices on the horizon,” he said.
Crude oil prices rose last week as investors weighed expectations of interest rate cuts by the Federal Reserve, tensions in the Middle East and uncertainty about the outlook for crude oil demand.
China on Tuesday made its biggest ever cut in mortgage rates, as authorities try to support the country's faltering real estate sector.
