SINGAPORE- Oil prices were little changed on Tuesday as traders weighed a host of conflicting supply and demand worries, with rising tensions in the Middle East and cold weather woes disrupting production in the United States.
Brent crude futures fell 2 cents to $80.04 a barrel, while US West Texas Intermediate crude futures (WTI) were last down 1 cent at $74.75 a barrel.
Both the contracts had settled about 2 percent higher on Monday, as a Ukrainian drone strike on Novatek’s Ust-Luga fuel export terminal raised supply concerns and drove up prices. Analysts say Novatek is likely to resume large-scale operations there within weeks.
While damage to loading berths at the Ust-Luga terminal only “briefly impacted exports,” the move raises the prospect of the Russia-Ukraine war “moving into a new phase where parties target key energy infrastructure,” analysts at ANZ Research said in a note.
In the Middle East, US and British forces have also carried out a fresh round of strikes targeting a Houthi underground storage site and missile and surveillance capabilities used by the Iran-aligned Houthi group.
The attacks by the Houthis on vessels in and around the Red Sea region have disrupted global shipping and stoked fears of inflation. The group has said their attacks are in solidarity with Palestinians as Israel strikes Gaza.