Shafaq News/ Oil prices paused their recent advances, receding in Asiantrading on Tuesday after surging more than 7% in the previous three sessions onsupply concerns prompted by fears of a wider Middle East conflict and theshutdown of Libyan oil fields.
Brent crude futures fell 32 cents, or 0.39%, to $81.11 a barrel at 0154GMT, while U.S. West Texas Intermediate crude futures fell 36 cents, or 0.46%,to $77.06 a barrel.
Oil markets are retracing slightly after sharp gains in the previousthree sessions driven by expectations of U.S. interest rate cuts that couldboost fuel demand, military assaults between Israel and Hezbollah in Lebanonover the weekend that threaten a wider Middle East conflict potentiallydisrupting supply from the key producing region and the Libyan closures.
Over that period, WTI gained 7.6% and Brent gained 7%.
"Markets remain on edge as skirmishes between Israel and Hezbollahintensify," ANZ analysts said in a note. "The risk of disruption toactual barrels of oil became real after Libya's eastern government said it willhalt all oil production and exports as a political tussle deepened."
That political dispute could affect up to 1.17 million barrels per dayof output from the North African country, based on data from the latest Reuterssurvey of production by the Organization of Petroleum Exporting Countries inJuly.
Oil has also been supported by the escalation of the conflict betweenIsrael and Hezbollah, with a major exchange of missiles between them asHezbollah attempts to retaliate for the killing of a senior commander lastmonth.
A top U.S. general said on Monday the danger of a broader had easedsomewhat but that a potential Iran strike on Israel remains a risk.
(Reuters)