Oil prices were relatively flat on Tuesday, with Brent crude settling at $73.31 per barrel, up $0.01, and WTI crude closing at $69.39 per barrel, up $0.23 (0.3%). Prices remained steady as escalating tensions in the Russia-Ukraine war raised concerns about potential supply disruptions. Ukraine’s use of U.S. ATACMS missiles against Russian targets and President Vladimir Putin’s lowering of the nuclear strike threshold added to geopolitical fears, keeping investors cautious.
On the demand side, signs of increased crude oil purchases by China provided some support. November imports are projected to approach record highs, reflecting an opportunity for China to capitalize on lower oil prices. This follows a weak year for Chinese imports, which contributed to a 20% drop in Brent prices from their April peak of $92 per barrel.
Oil prices were weighed down by the partial restart of Norway’s Johan Sverdrup oilfield after Monday’s outage, which had triggered a 3% spike in prices. A stronger U.S. dollar also pressured the market, alongside reports of a potential easing of tensions with Iran, as it proposed halting the expansion of its uranium enrichment stockpile.
In the U.S., crude oil stockpiles surged by 4.75 million barrels last week, significantly exceeding expectations of a 100,000-barrel build. The market now awaits official data from the U.S. Energy Information Administration on Wednesday to confirm inventory trends.