Oil fell after gaining in the previous four sessions due to supply risks from Russia
Oil prices fell on Tuesday after rising nearly 2% in the previous session. Investors are closely monitoring developments related to the Ukraine war, which could disrupt Russia's fuel supplies, and the impact of US tariffs on India.
Brent crude fell 37 cents, or 0.5%, to $68.43 a barrel at 06:58 GMT, while WTI crude fell 40 cents, or 0.6%, to $64.40 a barrel.
Both contracts rose to their highest level in more than two weeks on Monday, with WTI breaking above its 100-day moving average. Risks to crude prices appear to be biased towards further gains, particularly if the price sustains a move above the $64-$65 resistance level.
Monday's rise in oil prices was primarily driven by concerns about supply disruptions stemming from Ukraine's attack on Russian energy infrastructure and investors anticipating further US sanctions on Russian oil.
The attacks disrupted Russia's oil processing and exports, led to gasoline shortages in some Russian regions, and were a response to Moscow's heavy-handed intervention in Ukraine's gas and energy facilities.
Oil prices are trading within a narrow range due to geopolitical volatility and relatively resilient fundamentals.
Trump reiterated his threat to impose sanctions on Russia if progress toward a peace agreement is not made within the next two weeks.
Traders will also be monitoring the impact of upcoming US tariffs on India, which continues to purchase Russian oil. Starting Wednesday, Washington will impose an additional 25% tariff on all Indian-origin goods.
This means Indian exports will face US tariffs of up to 50%, one of the highest rates ever imposed by Washington.
Traders are awaiting U.S. inventory data from the American Petroleum Institute (API) later in the day. Expectations point to a decline in crude oil and gasoline inventories but a possible increase in distillate stockpiles.
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