Oil prices retreated on Tuesday after a significant rally the previous day, as traders weigh the potential for supply disruptions due to escalating tensions between the U.S. and Iran. Brent crude futures fell 0.60% to $113.77 per barrel, while U.S. West Texas Intermediate dropped 1.35% to $105.06 per barrel. The drop follows a 6% increase in Brent and a 4% rise in WTI on Monday, driven by fears of conflict in the Strait of Hormuz, where U.S. military actions against Iranian vessels have raised alarm.
This volatility in oil prices comes amid warnings from Goldman Sachs about the depletion of refined product inventories, particularly in key regions. While global oil stocks currently exceed emergency levels, the bank notes that localized shortages are emerging, especially in petrochemical feedstocks and jet fuel. Chevron’s CEO echoed these concerns, highlighting the potential for fuel shortages as geopolitical tensions persist.
Market participants should closely monitor these developments, as ongoing supply risks could lead to further price fluctuations and impact energy sector performance in the coming weeks.
Source: cnbc.com