Oil prices edged lower on Tuesday amid assessments of potential supply disruptions
Oil prices edged lower despite concerns about supply risks stemming from US-Iran tensions.
Brent crude futures fell 18 cents, or 0.26%, to $68.85 a barrel as of 03:53 GMT. WTI crude also dropped 21 cents, or 0.33%, to $64.15.
This decline follows a rise of more than 1% on Monday after the US Department of Transportation Maritime Administration advised US-flagged commercial vessels to stay as far away from Iranian waters as possible and to refuse boarding requests from Iranian forces verbally.
Approximately one-fifth of global oil consumption passes through the Strait of Hormuz between Oman and Iran, meaning any tensions in the region pose a significant risk to global oil supply.
This warning was issued despite Iran saying that nuclear talks with the U.S. had started well and would continue.
While talks in Oman produced a cautiously positive tone, uncertainty over potential escalation of tensions, tightening of sanctions, or supply disruptions in the Strait of Hormuz maintains a modest risk premium.
Meanwhile, the European Union has proposed expanding its sanctions against Russia to include Georgian and Indonesian ports where Russian oil is processed; this would be the first time the bloc has targeted ports in third countries.
This move is part of an effort to tighten sanctions on Russian oil, a significant revenue source for Moscow due to the war in Ukraine.
India, according to traders, purchased six million barrels of crude oil from West Africa and the Middle East; a stance related to New Delhi's avoidance of Russian oil in the face of pressure from Washington over a trade deal.
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