Oil loses popularity, Brent falls below $80
Oil prices ended lower on Tuesday in a market that remains more concerned about global crude demand than potential supply disruptions.
The price of a barrel of North Sea Brent for March delivery fell 0.63% to $79.55, having failed to stay above $80 on Monday.
West Texas Intermediate (WTI) crude fell 0.52% to $74.37 on a flat delivery basis.
“Oil is in a consolidation phase” in prices, summarized a note from Oanda’s Craig Erlam. In this situation, “lack of clarity on the economy, interest rates, OPEC+ (OPEC and its allies) and the Middle East” plays a role in crude oil, the expert added.
According to Stephen Schork of the Schork Group, operators expect the WTI price to be around $70 per barrel.
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“So until there is a supply interruption, “real disruption or peace” between Israel and Hamas, “we will continue to remain on these borders,” he predicted.
The dollar’s rise to a six-week high against the euro also supported crude oil prices, making dollar-denominated barrels more expensive for investors in other currencies.
Despite tensions in the Middle East, “a lot of speculators are bullish,” Schork said. This keeps prices under pressure.
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