Oil prices rose on Tuesday on fears Middle East tensions could disrupt supply, but uncertainty about the pace of potential U.S. interest rate cuts and the ensuing impact on fuel demand capped gains.
Brent futures edged up 31 cents, or 0.4%, to $82.31 a barrel as of 0725 GMT. U.S. West Texas Intermediate (WTI) crude rose 36 cents, or 0.5%, to $77.28 a barrel.
Oil prices were near flat in Monday's trade, after gaining 6% last week.
The conflict in the Middle East has kept prices elevated.
Yemen's Iran-aligned Houthis fired two missiles on Monday at an Iran-bound cargo ship in the Red Sea. The group has attacked international vessels with commercial ties to the U.S., Britain and Israel since mid-November claiming solidarity with Palestinians over the Israel-Hamas war.
A move by the U.S. to tighten or step up enforcement of sanctions on Iran would impact oil market supplies.
But worries about interest rates limited price gains. The New York Fed said its January Survey of Consumer Expectations showed the outlook for inflation a year and five years from now were unchanged, with both remaining above the Fed's 2% target rate.
If inflation worries delay Fed interest rate cuts, that could reduce oil demand by slowing economic growth.
Source : Reuters
