Oil Prices Decline Amid Concerns of Conflict in the Middle East

Oil prices fell in volatile trading on Tuesday, as worries about declining demand following a global sell-off on Monday outweighed fears of escalating conflict in the Middle East and a drop in Libyan oil production. By 13:20 GMT, Brent crude futures were down 41 cents, or 0.5 percent, to $75.89 a barrel, while U.S. West Texas Intermediate crude futures lost 43 cents, or 0.59 percent, to $72.51. Earlier in the session, both benchmark contracts rose over a dollar per barrel, supported by a broader upturn in Asian stock markets the previous night. On Monday, both benchmark crude prices dropped by about one percent amid declining global stock markets. The drop in oil prices was limited due to increasing concerns that Iran’s response to the assassination of Hamas's political bureau chief in Tehran, Ismail Haniyeh, and the killing of Hezbollah's military leader, Foad Shukr, in an Israeli strike could lead to a wider war in the Middle East. Concerns regarding reduced production at Libya's Sharara field, which produces 300,000 barrels per day, also supported prices. The National Oil Corporation of Libya announced on Tuesday that it would begin partial production cuts at the Sharara field due to "force majeure conditions resulting from protests."