NEW YORK: Oil prices fell about 4% in volatile trade on Tuesday, as two vessels passed through the Strait of Hormuz and the United States said the ceasefire with Iran remained in place despite exchanges of fire.
After jumping about 6% in the prior session, Brent futures fell US$4.57, or 4%, to settle at US$109.87 a barrel, while US West Texas Intermediate crude fell US$4.15, or 3.9%, to settle at US$102.27.
"The complex may have seen some selling related to optimistic comments from the Trump Administration regarding the continued ceasefire with Iran," analysts at energy advisory firm Ritterbusch and Associates said in a note.
"But today’s price weakness looked more like a technical correction following a strong ... Brent price advance during the past week," Ritterbusch noted.
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