Brent crude fell 32 cents, or 0.5%, to $68.48 per barrel, while West Texas Intermediate (WTI) crude also lost 33 cents, or 0.5%, to $64.47 per barrel.
Both contracts rose to their highest in more than two weeks on Monday, with WTI climbing above the 100-day moving average.
“The risks for crude oil prices appear tilted toward further gains, particularly if the price sustains a move above the $64 to $65 resistance level,” IG analysts said in a note.
Oil’s rally on Monday was primarily driven by worries about supply disruptions as Ukraine struck Russian energy infrastructure, and as traders anticipated more United States (US) sanctions on Russian oil.
The attacks disrupted Moscow’s oil processing and exports, created gasoline shortages in some parts of Russia, and came in response to Moscow’s advances on the front lines and its pounding of Ukraine’s gas and power facilities.
Barclays, in a note to clients on Monday, said that oil prices remain in a tight range amid geopolitical volatility and relatively resilient fundamentals.
US President Donald Trump has renewed his threat to impose sanctions on Russia if there is no progress towards a peace deal in the next two weeks.
Traders will also be monitoring the impact of looming US tariffs against India for its continued purchase of Russian oil, said Ole Hansen, head of commodity strategy at Saxo Bank.
–Reuters–
