Oil prices steady as investors shrug off US, Iran tensions

Crude oil futures held steady at their previous closing levels on Tuesday as investors shrugged off supply concerns arising out of tensions between the United States and Iran.

Global benchmark Brent crude was last trading up 0.3 percent at $73.31 per barrel (bbl), while WTI crude rose 0.5 percent to $67.86/bbl.

Prices had edged higher on Monday after US President Donald Trump warned Iran that it will “suffer consequences” if it threatened the United States.

“The oil market does not seem to be overly concerned about the recent tussle between the United States and Iran as prices remain close to three-month lows,” said Carsten Menke, commodities research analyst at Swiss private bank Julius Baer.

“Following the recent slide, which in our view was primarily driven by profit-taking in the futures market, we see prices closer to fair levels,” Menke said.

Oil has fallen nearly 8 percent this month, weighed down by escalating trade tensions between the US and China. Comments from OPEC+ members about their readiness to step-up output to plug any supply gaps have also acted as downside catalyst.

“There are currently factors with a neutralizing effect (to the US-Iran tensions),” Germany-based lender Commerzbank said in a note.

“Concerns about an escalation of the global trade conflict with possible negative impacts on oil demand and the rising oil production in Saudi Arabia, Libya and Russia,” it added, listing the potential catalysts.

Write to Nadeshda Zareen at nadeshda.zareen@argaamplus.com