Oil slips to $68 as rally fizzles out before U.S. supply report | Reuters

Oil slips to $68 as rally fizzles out before U.S. supply report | Reuters

Oil fell to around $68 a barrel on Tuesday in a choppy session, as easing concerns of a supply disruption in Saudi Arabia and U.S. dollar strength countered the prospects for tighter supply due to OPEC+ output curbs.

Crude hit its highest since the start of the pandemic on Monday after Yemen’s Houthi forces fired drones and missiles at Saudi oil sites on Sunday. Saudi Arabia said it thwarted the strike, however, and prices slipped as supply fears eased.

Brent crude was down 59 cents, or 0.9%, at $67.65 by 12:06 p.m. EST (1606 GMT), pulling back after trading as high as $69.33. It reached $71.38 on Monday, the highest since Jan. 8, 2020.

U.S. West Texas Intermediate (WTI) fell 88 cents to $64.17, after hitting its highest since October 2018 on Monday.

“There’s an expectation that we’re going to see another increase in U.S. crude supplies because refineries remain shut down,” said Phil Flynn, senior analyst at Price Futures group.