Brent crude held steady above $107 a barrel on Tuesday, with worries over escalating geopolitical tension balanced by expectations of large draws in U.S. oil stockpiles.
Speculators mostly kept on the sidelines, with light volumes across most risk assets including oil, but the risks in oil prices seemed to point towards gains, with the possibility of new Western sanctions on Russia, the world’s top crude producer.
“There is a lot of tough talk going on at the moment and the potential is there for further sanctions on Russia, which would have an impact across energy markets,” said Ben Le Brun, a market analyst at Sydney-based trader OptionsXpress.
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