Oil prices experienced a slight decline early on Tuesday following a more than 2% increase in the previous session. This movement was partially influenced by a pullback in precious metals, even as escalating tensions between Russia and Ukraine continued to leave markets concerned about potential supply disruptions. Brent crude futures for February delivery, set to expire on Tuesday, declined by 21 cents, or 0.3%, reaching $61.73 a barrel as of 0150. The more active March contract was priced at $61.30, reflecting a decrease of 19 cents or 0.3%. U.S. West Texas Intermediate crude declined by 20 cents, representing a 0.3% decrease, settling at $57.88. Both contracts settled more than 2% higher in the previous session after Moscow accused Kyiv of targeting President Vladimir Putin’s residence, which has heightened concerns regarding potential supply disruptions.

“The selling you are seeing now is probably some spillover weakness generated by the significant correction we saw in precious metals that is bound to impact pretty much every other commodity,” analyst Ed Meir said. Precious metals experienced a significant decline on Monday, with silver and platinum retreating from their recent record highs, as investors took the opportunity to realize profits following the recent upward trends. Meir remarked, “I think the markets are sensing that a deal is going to be very hard to come by.” Kyiv has rejected Russia’s claim that it was aiming at Putin as unfounded, asserting that such allegations are intended to disrupt peace talks.

The intensifying geopolitical tensions may reignite concerns over supply disruptions, potentially exerting upward pressure on oil prices. Traders expressed concerns regarding developments in the Middle East following President Donald Trump’s statement indicating that the United States might endorse another significant strike on Iran should it recommence the reconstruction of its ballistic missile or nuclear weapons programs. Trump issued a stern warning to the Palestinian militant group Hamas regarding the severe consequences of failing to disarm. He expressed a desire to advance to the second phase of the ceasefire agreement established between Israel and Hamas in October, following two years of conflict in Gaza.

In the near term, attention turns to Saudi Arabia, the largest oil exporter globally, which is anticipated to reduce the February price for its flagship Arab Light crude for Asian buyers for a third consecutive month. This adjustment reflects the downward trend in the spot market, driven by abundant supplies, according to sources. Price direction is likely to trend downward as we approach the first quarter of 2026, given the increasing oil surplus in the market,” Meir added.