Oil Tumbles as Investors Withdraw Profits amid Russia-Ukraine Tensions

Oil prices took a tumble on Tuesday as investors withdrew profits from the previous session’s seven-year high rally with world markets sliding in the face of rising geopolitical tensions between Ukraine and Russia.

Brent crude futures fell by 0.3% to $96.19 per barrel at 0205 GMT. U.S. West Texas Intermediate (WTI) futures also dipped by 0.4% to $95.10 a barrel. This comes after both benchmarks gained $96.78 and $95.82 respectively yesterday.

Hiroyuki Kikukawa of Nissan Securities said, "Investors scooped up profits from Monday's rally though they were hesitant to take fresh short positions due to rising tensions in Eastern Europe." He further contended, "Oil markets may see a real correction if the Iran-U.S. nuclear deal is agreed or global equities tumble further amid worries over inflation and tighter monetary policy by central banks."

According to JPMorgan Global Equity Research, a paucity in the OPEC+’s oil production is inclined to tighten the market with oil prices reaching $125 per barrel by the second quarter of 2022.