Nonetheless, analysts have warned the energy market is extremely sensitive to any geopolitical developments, especially regarding the outcome of the Iran nuclear deal and sanctions.
In less than two weeks, President Donald Trump must decide whether to continue suspending sanctions against Iran under the current nuclear accord, or restore penalties on one of the world’s biggest oil producers.
“Geopolitics is now playing into where the price is and so I think you could see an oil price correction quite comfortably,” BP’s Gilvary said.
Global benchmark Brent traded 0.3 percent lower at $74.46 during early morning deals Tuesday, while West Texas Intermediate (WTI) stood at $68.43, down around 0.2 percent.
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