Oil prices declined on Tuesday with concerns over potential oil supply disruption easing as the market still awaits an Israeli response to the Iranian rocket attacks last week which triggered the crude price rally.
crude futures fell $1.11, or 1.37%, to $79.82 per barrel at around 0805 GMT. U.S. West Texas Intermediate futures fell $1.12, or 1.45%, to $76.82 a barrel.
Panmure Liberum analyst Ashley Kelty said prices are set to remain volatile but profit taking could pressure the market in the absence of a material shift in activity in the Middle East.
Both contracts rose more than 3% on Monday to their highest levels since late August, adding to last week’s rally of 8%, the biggest weekly gain in over a year, on concerns that escalating hostilities could disrupt oil supplies from the Middle East.