Oil prices faced renewed pressure on Tuesday, retreating after a strong surge the previous day. Traders remained focused on the oil prices outlook, which continues to be shaped by the Russia-Ukraine conflict and its impact on supply chains.
Brent crude dropped 32 cents, or 0.5%, to $68.48 per barrel in early Asian trade. Meanwhile, West Texas Intermediate slipped 33 cents, or 0.5%, to $64.47 per barrel. Both benchmarks touched their highest levels in over two weeks on Monday, with WTI surpassing its 100-day moving average.
Analysts highlighted that the oil prices outlook may still tilt toward further gains. Market watchers believe a sustained rise above the $64–$65 range could trigger fresh momentum.
The sharp rally on Monday came as Ukraine launched strikes on Russian energy infrastructure. Those attacks disrupted oil processing and exports, adding new pressure to fuel supplies. Several Russian regions reported gasoline shortages, which heightened concerns about future disruptions. The strikes followed Moscow’s advances on the battlefield and its attacks on Ukraine’s energy facilities.
At the same time, expectations of new U.S. sanctions on Russian oil added fresh volatility. Washington warned that additional restrictions could follow if no progress emerges toward a peace deal within two weeks.
Market strategists also noted that trade tensions are adding weight to the oil prices outlook. The U.S. confirmed a new 25% tariff on all Indian-origin goods starting Wednesday. This move will push total duties on Indian exports to as high as 50%. Officials in New Delhi fear severe disruptions to trade, especially after earlier criticism over India’s increased purchases of Russian oil.
Commodity experts pointed out that geopolitical volatility continues to dominate oil market behavior. Barclays, in a note to investors, explained that prices remain trapped in a narrow band, balancing resilient fundamentals against conflict-driven risks.
Investors are also awaiting fresh U.S. inventory data from the American Petroleum Institute. Forecasts suggest a decline in crude and gasoline stockpiles, although distillate supplies may increase. The data could provide new signals for short-term pricing trends.
Overall, traders agree that supply risks, geopolitical friction, and U.S. trade actions will keep markets tense. Many believe the coming weeks could prove decisive for both global energy flows and regional stability.
