Oil prices fell for a second day as the recent rally took a breather, with traders assessing the situation in the Middle East. Crude oil futures saw a decline on Tuesday, with the West Texas Intermediate contract for May delivery dropping 67 cents to $85.76 a barrel, and the June Brent futures contract losing 49 cents to $89.89 a barrel.
The recent reduction of forces in Gaza by Israel over the weekend led to lower crude prices on Monday, indicating a potential shift in the military campaign. However, Barclays’ head of equity derivatives strategy, Stefano Pascale, warned of upside risks to oil prices due to ongoing geopolitical tensions in the Middle East.
Pascale highlighted the possibility of a “further melt-up” in oil prices reawakening inflationary concerns and potentially derailing the equity rally. Despite the pause in the recent oil price rally, concerns about geopolitical tensions and rising global demand continue to pose upward pressures on oil prices.
As traders navigate the volatile oil market, the potential impact on inflation and equity markets remains a key concern. Stay tuned for further developments in the oil market as geopolitical tensions and global demand dynamics continue to influence prices.
