SINGAPORE: Brent crude oil prices steadied above $60 a barrel in early Asian trading on Tuesday, supported by traders entering the market after prices dropped sharply in the previous session on the back of record US stocks.
Brent futures fell 5 percent, its most in a month, on Monday as record stocks and speculation of a nuclear deal with Tehran could lift Iran’s sanctions and boost its oil exports brought worries about high supplies back to the market.
But with an immediate lifting of sanctions unlikely, prices lifted again on Tuesday after traders took advantage of cheap oil to take on new long positions.
Front-month Brent crude futures were trading at $60.20 a barrel at 0147 GMT, up 66 cents from their last settlement. US WTI futures were up 28 cents at $48.87 a barrel.
“Brent crude prices (are) attempting to rally on rapid week-on-week reduction in US… rig count,” Morgan Stanley said on Tuesday in a note.
