Crude oil futures remained volatile on Tuesday as traders continued to assess geopolitical developments around the tensions in the Middle East.
Mounting hostilities between Iran and Israel have introduced renewed uncertainty into the global energy markets.
Comments from U.S. President Trump have raised concerns over increased risk in the Middle East. As the conflict enters its fifth day, the prospect of escalating military engagement could fuel the risk premium, with investors closely watching for signs of further deterioration or diplomatic overtures.
Markets could also react to any new data on crude demand. API and EIA inventory data could affect the market’s direction. The data has shown consecutive declines in stocks, supporting the market. A large draw could help drive crude prices higher, while a wide build-up in volumes could weigh on the market. The market could also react to other US economic data, such as retail sales and industrial production data, as traders gauge the strength of the US economy.
