Oil prices were little changed on Tuesday following a gain of more than 2% in the previous session after Russia accused Ukraine of attacking President Vladimir Putin’s residence and investors sought clarity on Ukraine peace talks to gauge potential supply disruptions. Brent crude futures for February delivery, which expires on Tuesday, were down 2 cents at $61.92 a barrel as of 0314 GMT. The more active March contract was at $61.44, down 5 cents. U.S. West Texas Intermediate crude eased 5 cents at $58.03. The Brent and WTI benchmarks settled more than 2% higher in the previous session after Moscow accused Kyiv of targeting President Vladimir Putin’s residence, stoking fears of supply disruptions.
Kyiv has dismissed Moscow’s accusation as baseless and designed to undermine peace negotiations. After a phone call with Putin, U.S. President Donald Trump said he was angered by details of the alleged attack.
The escalating geopolitical tensions, despite Trump repeating his belief that a peace deal might be near, could pressure oil prices.
“I think the markets are sensing that a deal is going to be very hard to come by,” said Marex analyst Ed Meir.
Traders were also worried about Middle East developments, after Trump said the United States could support another major strike on Iran were Tehran to resume rebuilding its ballistic missile or nuclear weapons programs.
Trump also warned Palestinian militant group Hamas of severe consequences if it did not disarm, adding he wanted to move to the second phase of the ceasefire deal between Israel and Hamas reached in October after two years of war in Gaza. Despite heightened fears over potential supply disruptions due to geopolitical tensions, perceptions of an oversupplied global market remain and could cap prices, analysts say.
Marex’s Meir said prices would trend downwards in the first quarter of 2026 due to a “growing oil glut.”
“Given the crosscurrents of U.S.-led peace efforts and persistent oversupply concerns versus simmering geopolitical tensions – we expect WTI to continue to trade in a $55–$60 range in the near term,” IG analysts said in a note on Tuesday.
(Reporting by Anushree Mukherjee in Bengaluru and Sudarshan Varadhan in Singapore Editing by Shri Navaratnam and Kate Mayberry)