Oil prices of benchmark grades are declining in trading on Tuesday after reaching their highest levels in the last two weeks a day earlier.
At 8:01 a.m., May futures for Brent at ICE Futures Exchange in London stood at $77.8 per barrel, down $0.32 (0.4%) from the previous session’s close. Those contracts rose by $3.13 (4.2%) to $78.12 per barrel at Monday’s trading.
WTI futures for May at electronic trades of NYMEX decreased by $0.04, to $72.77 per barrel. Contracts rose $3.55 (5.1%) to $72.81 a barrel in the previous session.
“The crystal ball, which was clouded by the banking crisis, now shows an opportunity for profit in the oil market,” believes Manish Raj, managing director of Velandera Energy Partners. According to him, “After the disorderly sell-off in mid-March, cooler thinking has begun to prevail as traders see falling oil prices as a good entry point into the market,” MarketWatch reports.
However, analysts continue to fear the possibility of a recession in the U.S. economy, which is weighing on the market, Trading Economics reported.
