Oil prices retreated in Asian trade on Tuesday, giving back part of the gains from the previous session, as investors continued to track developments in the Russia-Ukraine conflict and potential supply disruptions.
By 3:35 pm AEST (5:35 am GMT), Brent crude slipped 28 cents, or 0.4%, to $68.52 a barrel, while West Texas Intermediate (WTI) crude fell 31 cents, or 0.5%, to $64.49.
Both benchmarks had touched their highest levels in more than two weeks on Monday.
Monday’s rally was fuelled by concerns that Ukraine’s strikes on Russian energy infrastructure could curb oil processing and exports.
The attacks, which caused gasoline shortages in some parts of Russia, followed Moscow’s latest advances on the battlefield and intensified bombardments of Ukraine’s gas and power facilities.
ANZ analysts noted: “Ukraine has attacked eight Russian refineries so far this month, raising concerns of fuel market tightness.”
The geopolitical risk premium was further heightened as United States President Donald Trump reiterated his threat to impose sanctions on Russia if no progress is made toward a peace deal in the next two weeks.
Markets were also unsettled by trade tensions with India. Washington confirmed plans to introduce an additional 25% tariff on all Indian-origin goods from Wednesday, a move that will see duties rise to as much as 50%.
The measure, framed as retaliation against New Delhi’s increased purchases of Russian oil earlier in August, is expected to weigh on Indian exporters.
Attention now turns to U.S. inventory data due from the American Petroleum Institute later in the day.
