Oil prices steadied on Tuesday as market participants weighed recent supply fundamentals against evolving geopolitical developments, tempering the steep sell‑offs seen in previous sessions.

Brent and West Texas Intermediate benchmarks held within narrow bands as traders balanced forecasts for global demand with fresh risk signals from Middle Eastern and U.S. policy discussions.

Domestic and international inventories showed mixed signals, and OPEC+ comments later this week are expected to provide further guidance on production discipline. Equity markets’ rebound also lent some support to energy shares, which had lagged amid broader market swings.

In the Middle East, markets monitored diplomatic activity that could affect longer‑term stability in oil flows, even as short‑term disruptions appeared limited.

Traders said any news of negotiated de‑escalation or renewed dialogue between major producing nations could offer relief to supply risk premia built into prices.

Energy equities responded positively to the stabilising price backdrop, though performance varied across regions and sectors. Integrated oil majors and refining companies saw modest gains as traders balanced supply concerns against broader market strength.

Currency movements also influenced oil valuations, with a mixed performance in the U.S. dollar affecting demand expectations among international buyers. A stable dollar tends to support commodity pricing outside the United States.

Analysts said attention will turn to upcoming OPEC+ meetings and economic data releases that could clarify near‑term demand prospects, potentially setting the tone for energy markets in the weeks ahead.

Source: Reuters.