Concerns about demand balance Middle East risk, bringing oil prices close to zero

For the second straight day, there was little movement in oil prices on Tuesday as concerns about supply disruptions from Middle East conflicts were outweighed by uncertainty over the timing and effect of prospective US interest rate reduction and fuel consumption.

Futures for Brent dropped by one penny to $81.99 per barrel. A barrel of US West Texas Intermediate (WTI) oil increased by one cent to $76.93.
Following a 6% increase in oil prices the previous week, prices remained almost unchanged on Monday.
The Middle East war has kept prices high.
In a fierce rescue operation that claimed the lives of 74 Palestinians in the southern Gaza city of Rafah, where almost a million residents had sought safety after months of shelling, Israel released two Israeli-Argentine captives held by Hamas on Monday.
But concerns about interest rates were restricting growth.
According to the New York Fed, the results of its January Survey of Consumer Expectations indicated that both the one-year and five-year inflation outlooks were positive and above the Fed’s goal rate of 2%.
If concerns about inflation postpone the Fed’s interest rate reductions, this might lower oil consumption by reducing economic expansion.
British inflation and GDP figures for the euro zone are anticipated on Wednesday, while US inflation data is anticipated on Tuesday.
Investors anticipated industry data about US crude inventories later on Tuesday. In the week leading up to February 9, the average estimate of four Reuters-surveyed experts was that oil stockpiles increased by around 2.6 million barrels.