Oil steadied after another sharp pullback as traders remained wary over whether supplies will be sufficient to cover a range of global disruptions.
Futures in New York traded near $68 a barrel, having tumbled 4.2 percent on Monday as Libya restored output at some fields and the U.S. signaled it may take a slightly softer approach with sanctions on Iranian exports. Iraq is shipping the most crude since 2016 and the U.S. is considering tapping emergency reserves. Still, with American inventories forecast to have dropped further from the lowest level since 2015, traders remain on edge.
West Texas Intermediate crude for August delivery traded at $67.92 a barrel on the New York Mercantile Exchange as of 11:31 a.m. in London, after decreasing $2.95 to $68.06 on Monday. Total volume traded was about 7 percent below the100-day average.
Brent for September settlement fell 10 cents to $71.74 a barrel on the London-based ICE Futures Europe Exchange, following Monday’s $3.49 drop. The global benchmark crude traded at a $4.73 premium to WTI for the same month.
Source : Bloomberg