Oil prices experienced a slight uptick on Tuesday afternoon, with West Texas Intermediate crude futures, the US benchmark, increasing by 0.8% to $73.48 per barrel. Similarly, Brent crude futures, the international benchmark, rose by 0.4% to $75.92 per barrel.
This rise follows a previous day's decline in crude futures, attributed to concerns about a potential US economic slowdown and weak demand from China. The recent fall in crude prices has been fueled by fears of a recession impacting travel and other fuel consumption. While a recession in the US may not be imminent, the rapidly increasing unemployment rate in the country is causing unease among investors.
Despite escalating tensions in the Middle East, these concerns have been overshadowed by worries about economic factors affecting oil demand. Analysts suggest that oil prices may remain at their current eight-month lows for some time, despite the looming threat of a broader conflict in the region.
Tom Kloza, the global head of energy analysis at Oil Price Information Service, noted that since the Hamas action on October 7, there has been a general lack of concern regarding the possibility of a wider regional war in the Middle East.
