Oil slips on investor caution as market watches Middle East turmoil | Reuters
Oil prices eased on Tuesday after rallying more than 4% in the previous session, with traders cautious as they watched for potential supply disruptions amid military clashes between Israel and the Palestinian Islamist group Hamas.
Brent crude was down 37 cents to $87.78 a barrel as of 1240 GMT, while U.S. West Texas Intermediate (WTI) crude had eased 40 cents to $85.98 a barrel. Both benchmarks had fallen by more than $1 in earlier trade.
Brent and WTI had surged more than $3.50 on Monday as the clashes raised fears that the conflict could spread beyond Gaza. Hamas launched the largest military assault on Israel in decades on Saturday, while Israel pounded the Gaza Strip on Tuesday with the fiercest air strikes in the 75-year history of its conflict with the Palestinians.
"There is still plenty of uncertainty across markets following the attacks in Israel over the weekend," said ING analysts on Tuesday, adding that oil markets are now pricing in a risk premium.
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