Oil prices declined on Tuesday but the market was on tenterhooks over the threat of retaliation for attacks on Saudi Arabian crude oil facilities that halved the kingdom’s output and prompted a price spike not seen in decades.
Saturday’s attacks raised the specter of a major supply shock in a market that in recent months has been preoccupied with demand concerns and faltering global growth. Oil surged as much as 20% at one point on Monday.
Brent crude LCOc1 was down $1.22, or 1.8%, at $67.88 a barrel at 0930 GMT, and West Texas Intermediate CLc1 was down $1.13, or 1.8%, at $61.77 a barrel. Earlier, both crude benchmarks fell by around 2%.