Oil falls as the impact of geopolitical tension recedes in the face of economic concerns

Price action

By 0125 GMT, Brent crude futures fell 14 cents, or 0.2 percent, to $79.92 per barrel, while US West Texas Intermediate crude futures fell ten cents, or 0.1 percent, to $74.66 per barrel.

The two crude oil prices rose by about two percent on Monday, as a Ukrainian drone attack on a fuel export station belonging to the Novatek Ust Luga company raised concerns about supplies and thus higher prices. Analysts expect that Novatek will largely resume operations there within weeks.

While the terminal's loading docks were damaged, it “briefly affected exports,” analysts from ANZ Research said in a report, but the move raises the prospect of the Russia-Ukraine war moving to a new phase, with both sides targeting key infrastructure. For energy.

The geopolitical tension was overshadowed by continuing concerns about China's faltering economic recovery, which exacerbated concerns about global oil demand given that the Asian giant is the world's largest importer of crude oil.

In the Middle East, the United States called on Israel to protect innocent people in hospitals, medical staff, and patients, while Israeli forces stormed a hospital and placed another under siege during their advance deep into Khan Yunis in Gaza.

American and British forces also carried out a new round of strikes targeting an underground Houthi storage site and missile and surveillance capabilities used by the Houthi group in Yemen.

The attacks launched by the Houthis on ships in and around the Red Sea region disrupted global shipping traffic and raised fears of inflation. The group says its attacks come in solidarity with the Palestinians at a time when Israel is bombing Gaza.