Benghazi – Oil prices lacked a clear direction on Tuesday. Global markets remained cautious. This was due to potential trade tensions. Tensions were noted between the United States and several European countries. Supporting factors included a weaker US dollar. Positive economic data also emerged from China.
Brent crude futures for March delivery fluctuated. Prices rose early in the session. They later fell to approximately $63.78 per barrel. US West Texas Intermediate (WTI) crude contracts for February saw a slight increase. However, the most traded March contract declined.
The dollar’s decline offered relative support to oil prices. It makes dollar-denominated goods cheaper. This benefits investors holding other currencies. Markets were also impacted by renewed fears. These fears stemmed from a potential trade escalation. It could occur between Washington and European nations.
These concerns grew following threats. The threats involved additional tariffs on European imports. This evoked memories of past trade wars. It also raised worries about their impact on global energy demand.
Conversely, Chinese data supported the markets. The economy grew by five percent last year. Refinery consumption and crude oil production reached record levels. This indicates strong commodity demand. This occurred despite weaker domestic consumption.
Markets are also monitoring Venezuela’s oil sector. Indicators suggest potential changes in sector management. This could affect global supplies in the coming period.