Oil steadies as investors eye Middle East tensions and US rate cut | Reuters

Oil steadies as investors eye Middle East tensions and US rate cut | Reuters

Oil steadied on Tuesday, finding support from geopolitical tensions in the Middle East and investor optimism that the U.S. Federal Reserve would soon start cutting interest rates, boosting global economic growth and fuel demand.

While hopes of rate cuts and conflict in the Red Sea have led to a rebound in crude prices, Maersk's announcement of a restart of shipping routes through the waterway has alleviated supply concerns to a certain extent, said CMC Market analyst Leon Li.

Brent crude futures slipped 7 cents, or 0.1%, to $79.00 a barrel by 1030 GMT while U.S. West Texas Intermediate crude fell 28 cents, or 0.4%, to $73.28.

"The lack of oil supply disruptions is offsetting the support to prices from ongoing geopolitical tensions in the Middle East," said UBS analyst Giovanni Staunovo, adding that trade was thin and in a narrow range typical of holiday periods.

Volume is light because some markets are closed for public holidays.