Crude oil futures ended lower on Tuesday, snapping a three-session winning streak, after concerns about a U.S.-Iran standoff faded a bit as there was no further escalation in tensions.
However, conflicting reports about U.S. troops withdrawal from Iraq limited oil’s uptick.
West Texas Intermediate Crude oil futures for February ended down $0.57, or about 0.9%, at $62.70 a barrel.
WTI crude oil futures for February ended up $0.22, or 0.4%, at $63.27 a barrel on Tuesday, the highest closing value in seven months.
Oil prices rose sharply on Monday, amid rising geopolitical tensions following the killing of top Iranian commander Qasem Soleimani on Thursday in a US air strike and the subsequent threats and counter-threats by Iran and the U.S.
Oil prices edged lower on Tuesday amid hopes the war of words between Washington and Teheran will not escalate into a full-fledged military conflict. Still, the uncertainty on this front limited the commodity’s decline a bit.
There were conflicting reports about American military repositioning troops in preparation for leaving Iraq.
There was some confusion earlier in the day after a letter surfaced showing that U.S.-led coalition troops would leave Iraq. The Pentagon later clarified that it was a mistake and “there has been no decision whatsoever to leave.”
Traders were also awaiting the data on crude inventory. While the American Petroleum Institute will release its weekly oil report late Tuesday, the Energy Information Administration’s inventory data is due Wednesday morning.
The material has been provided by InstaForex Company – www.instaforex.com