Oil prices declined for a second straight session on Tuesday as worries about possible disruptions to supply eased.

Jonathan Barratt, economist & chief investment officer at Ayers Alliance said, “It is a very long market. A lot of traders have been long expecting the supply issue to continue to crunch and prices to trade higher. However, I guess when you look at the stance on Iran, also the potential for strategic petroleum reserves to be led on to the market, which is another thing that Trump said if you get this criteria that suggests if you are long, you are wrong, so let us get out of the market.”

Barratt further added, “We have had an 8 percent readjustment in prices. So the good thing is that it creates a pretty tough resistance to the top side. So we do have that top in place, and I would like to see prices level off, I would like to understand more about those geopolitical issues that we have, but I think prices should steady off. I think they still have this gravity towards the top side, but I do not yet see them breaking through as new highs.”

First Published:Jul 17, 2018 2:07 PM IST