SINGAPORE: Oil prices dropped by over $1 on Tuesday as traders took profits following a sharp rally driven by fears of escalating conflict in the Middle East. Brent crude fell $1.17, or 1.5%, to $79.76 per barrel, while US West Texas Intermediate (WTI) dropped $1.19, or 1.6%, to $75.95 per barrel around 0420 GMT.
The market saw a 3% rise on Monday, its highest since late August, amid concerns that growing tensions in the region could disrupt oil supply. However, investors have started to scale back bets on the conflict’s impact on energy supplies. Analysts still expect prices to stay supported due to ongoing geopolitical risks, as the market awaits further developments in the region and US inflation data later in the week.
