Oil prices fell on Tuesday as Hungary resisted pressure from the European Union to ban oil imports from Russia.
Brent crude futures were down 11 cents, or 0.1%, to $114.13 as of 0602 GMT. West Texas Intermediate (WTI) crude futures fell 22 cents, or 0.2%, to $113.98 a barrel.
Both indicators rose more than 2% on Monday after gaining 4% on Friday.
EU foreign ministers on Monday failed in their efforts to pressure Budapest not to veto a proposed oil embargo on Russia after the country invaded Ukraine. The embargo requires the approval of all EU countries.
On the supply side, US manufacturers are stepping up to replenish their dwindling stocks after Russia’s intervention against Ukraine and recovery from the COVID-19 pandemic.
The U.S. Energy Information Administration (EIA) said that Permian Basin oil production in Texas and New Mexico, the largest U.S. shale oil producer, will increase by 88,000 barrels per day (bpd) to reach 5,219 million barrels per day in June.
Still, analysts said the overall sentiment for prices continued to rise, with optimism about the recovery in demand as it sought to ease the COVID restrictions that are hurting China’s economy.
All supplied data shows the declines will be shallow despite the potential demand damage from China’s lockdown, light appears at the end of the quarantine tunnel.
Intensifying geopolitical tensions between the EU and Russia have made prices even more supportive as Sweden and Finland seek to join NATO. This could cause Russia to retaliate to further cut gas supplies.
Stocks in the Strategic Petroleum Reserve (SPR) fell to 538 million barrels, the lowest since 1987, and supply was tight, the U.S. Department of Energy said on Monday.
