Oil prices hover at three-week lows as global supply concerns fade

Global oil prices fell in European trade on Tuesday on track for the second loss, almost touching three-week lows as concerns about Middle East supply disruptions fade as Iran-Israel tensions calm down. 

Prices are also pressured by weak manufacturing data in Europe and the UK, which indicate weaker growth and fuel demand.

Now markets await initial US crude inventory data from the American Petroleum Institute, expected to show a buildup for the third straight week. 

Prices 

US crude fell 1.5% to $80.92 a barrel, with a session-high at $82.98.

Brent prices fell 1.4% to $86.06 a barrel, with a session-high at $88.17. 

On Monday, US crude lost 0.1% after touching a three-week low at $80.74, while Brent slipped 0.1%, after hitting March 28 lows at $85.82. 

Iran-Israel Tension Soothes 

Iran’s foreign minister Hussein Amir said to the NBC that Tehran doesn’t intend to respond to Israel’s retaliation strike on Friday. 

Such remarks reduced the concerns of an escalation to a full-scale war with Iran with markets now once again focused on supply and demand dynamics. 

Global Manufacturing 

Earlier European and UK data showed the manufacturing sector suffering serious declines this month. 

It’s the latest series of data which showcases the slowdown of the global economy in the first half of the year.  

US Stocks

Later today, initial US inventory data from the American Petroleum Institute will be released, expected to show a buildup for the third straight week.