Oil falls almost USD2

Crude futures dropped by close to USD2 a barrel on Tuesday, Business Recorder reported, while remaining near six-month highs amid disruption to Middle East shipping and uncertainty over a US-Israeli agreement with Iran. Brent ended at USD113.88, down USD1.93 or 1.67 percent, while US West Texas Intermediate settled at USD99.90, lower by USD1.86 or 1.83 percent.

Continuing attacks and security concerns around the Strait of Hormuz are sustaining supply-risk concerns, despite the day’s decline. Brent had climbed above USD117 last week, and UBS now expects it to remain near USD110 through year-end, higher than its previous USD100 estimate; meanwhile, Russian exports from Baltic and Black Sea ports are forecast to fall next month as refinery processing rises.