Crude oil prices fell by 1% on Tuesday due to weak U.S. consumer confidence data, raising concerns about the economic outlook and fuel demand. Brent futures for August settled at $85.01 a barrel, down 1.2%, while U.S. crude futures settled at $80.83, down 1%. U.S. consumer confidence decreased in June, with concerns about the economy potentially affecting gasoline demand. U.S. crude stocks increased by 914,000 barrels, while gasoline inventories rose by 3.843 million barrels and distillates fell by 1.178 million barrels, according to the American Petroleum Institute. A Fed “decision on interest rates is still mixed, and most of the crude market has priced in a quarter percent cut by September,” said Dennis Kissler, senior vice president of trading at BOK Financial. Supply disruptions due to Ukrainian attacks on Russian oil infrastructure also supported oil prices, as did escalating tensions between Israel and the Iran-backed group Hezbollah. Israeli airstrikes in Gaza resulted in at least 24 Palestinian deaths, with international mediation efforts failing to secure a ceasefire. “Geopolitical pressures continue to roil the oil market from multiple fronts,” said Claudio Galimberti of Rystad Energy, noting that tensions are likely to persist amid ongoing conflicts and failed ceasefire efforts.

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