FX.co ★ Oil Holds Decline

WTI crude oil futures maintained their recent downward trend, settling around $60.5 per barrel on Tuesday. This movement reflects traders' assessment of the global supply-demand balance against a backdrop of persistent geopolitical risks. Prices faced downward pressure as issues with Kazakh oil flows were alleviated after operations resumed at a significant Black Sea export terminal. However, this downward momentum was somewhat countered by production disruptions in the United States, where a severe winter storm reportedly led to a 15% decline in national output over the weekend. On the geopolitical front, escalating tensions in the Middle East, highlighted by the US bolstering its military presence due to increased frictions with Iran, have fueled worries about potential disturbances to regional energy supplies. Additionally, stalled US-mediated negotiations between Russia and Ukraine have supported price levels, as they indicate ongoing restrictions on Russian crude exports are likely to persist.