Oil prices were mostly steady in Asian trade on Tuesday. This came after strong gains in the previous session. Traders took a breather while watching global tensions and fresh supply data.
Brent crude for February rose slightly by 0.1% to $61.98 a barrel. U.S. WTI crude also added 0.1% and traded at $58.11 a barrel.
Both oil benchmarks had jumped more than 2% on Monday. Prices climbed after hopes for progress in Russia Ukraine peace talks faded.
Tensions between Russia and Ukraine remain high. Russian President Vladimir Putin said Moscow would rethink its negotiating stance. This followed what the Kremlin described as Ukrainian drone attacks near one of his residences.
Ukraine denied targeting Putin. Still, the remarks reduced hopes for a quick easing of the conflict. Many now fear the war could continue into next year.
Concerns grew further after comments from U.S. President Donald Trump. He said the U.S. would strike Iran again if it tried to rebuild its nuclear program.
These remarks added to worries in the Middle East. The region is crucial for global oil supply. Any escalation there raises fears of supply disruptions.
On the supply side, investors looked at new U.S. inventory data. The report was released later than usual because of the Christmas holidays.
Data from the U.S. Energy Information Administration showed crude oil stocks rose by about 405,000 barrels for the week ended Dec. 19. Markets had expected inventories to fall.
Gasoline and distillate fuel stocks also increased. This suggested weaker demand or strong refinery production during the period.
Looking ahead, traders are watching diplomatic moves in Eastern Europe closely. They are also keeping an eye on U.S. economic data and signals from OPEC+. These factors will shape demand and supply expectations for early 2026.
