Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns

Oil prices edged lower in early Tuesday trading after posting gains of more than 2% in the previous session, as commodity markets reacted to weakness in precious metals while remaining sensitive to escalating geopolitical tensions. Investors continue to balance short-term profit-taking against longer-term fears of potential supply disruptions stemming from global conflicts.

Brent crude futures for February delivery, which expire Tuesday, slipped 21 cents, or 0.3%, to $61.73 per barrel in early Asian trading. The more actively traded March Brent contract declined 19 cents, or 0.3%, to $61.30 a barrel. U.S. West Texas Intermediate crude also eased, falling 20 cents, or 0.3%, to $57.88 per barrel.

The modest pullback follows a strong rally in the previous session, when both benchmarks climbed over 2% after Russia accused Ukraine of targeting President Vladimir Putin’s residence. That claim heightened concerns about possible supply disruptions linked to the ongoing Russia–Ukraine conflict, even as Kyiv denied the allegations and said they were intended to derail peace negotiations.

According to analysts, the latest decline in oil prices was partly driven by spillover selling from precious metals. Silver and platinum retreated sharply on Monday after reaching record highs, as investors locked in profits following recent rallies. Market participants noted that broad-based corrections in commodities often influence energy prices as well.

Geopolitical risks remain a key factor underpinning oil market sentiment. In addition to tensions in Eastern Europe, traders are monitoring developments in the Middle East. U.S. President Donald Trump said Washington could support further strikes on Iran if it resumes rebuilding its ballistic missile or nuclear weapons programs, while also warning Hamas of severe consequences if it fails to disarm amid ongoing ceasefire negotiations with Israel.

Looking ahead, supply fundamentals are also pressuring prices. Saudi Arabia, the world’s largest oil exporter, is expected to cut February prices for its Arab Light crude sold to Asian buyers for a third consecutive month, reflecting ample global supply. Analysts warn that a growing oil glut could weigh on prices into the first quarter of 2026, despite persistent geopolitical uncertainty.