A Repsol Oil Operations oil drilling rig kilos into the desert looking out by 1000’s of ft for and oil reserve in El-Sharara, Libya.
Benjamin Lowy | Getty Images
Oil prices fell on Tuesday as investors monitored the struggle in Ukraine, the battle within the Middle East and the restart of production at a significant oilfield in Libya.
The West Texas Intermediate contract for March fell 67 cents, or 0.9%, to commerce at $74.09 a barrel. The Brent contract for March misplaced 69 cents, or .86%, to commerce at $79.37 a barrel.
Oil prices rallied about 2% on Monday after a suspected Ukrainian drone strike towards a significant Russian gas terminal on the Baltic Sea highlighted the geopolitical threats to crude provides.
“The assault by Ukrainian forces on the Russian firm Novatek within the Baltic is a well timed reminder {that a} greater, extra influential struggle remains to be waging on,” John Evans with PVM Oil Associates wrote Tuesday in a be aware.
The U.S. and Britain on Monday additionally launched one other spherical of airstrikes towards Houthi militants in Yemen. The militants have repeatedly attacked business vessels within the Red Sea over the previous two months, forcing container ships and oil tankers to pause transit by the important thing waterway.
The potential threats to crude provides have been tempered by Libya restarting production on the Sharara oilfield, which was shut down for about two weeks as a result of protests. The oilfield has the capability to supply 300,000 barrels per day.