Oil prices rise as Middle East concerns fuel supply fears

 
INA-sources
 
Oil prices bounced back in early trade on Tuesday, following a more than 1% drop the previous session, as escalating geopolitical tensions in major producing region the Middle East fuelled supply concerns.

Brent crude futures rose 17 cents, or 0.21%, to $82.57 a barrel by 0401 GMT. U.S. West Texas Intermediate crude was up 17 cents, or 0.22%, at $76.95 a barrel.
Both the contracts fell over $1 on Monday as a deepening real estate crisis fuelled worries about demand from China, the world's biggest crude consumer, after a Hong Kong court ordered the liquidation of property giant China Evergrande Group.

"Oil price trading above US$80/bbl is pricing in some geopolitical risk premium again as flare ups continue in the Middle East region. This could fade out within a week or two if there is no strong reaction from the US," said DBS Bank's energy sector team lead Suvro Sarkar.
"If it does worsen into a US-Iran standoff and stricter sanctions, then we are looking at US$80-100/bbl range for oil to sustain for some time," he added.
 
Source: Reuters