Oil hovers near $102 as truce hopes offset Middle East supply risks

  • Crude oil hovered around $102 a barrel on Tuesday after Monday's 1.3% rise.
  • Saudi Arabia's East-West pipeline closure kept Middle East supply concerns elevated.
  • Turkey said it was brokering talks; Ukraine indicated support, and the Kremlin called it positive.

Crude oil hovered around $102 a barrel on Tuesday after rising 1.3% in the previous session, with markets weighing Middle East supply risks against possible progress toward a Russia-Ukraine energy truce. Prices pulled back from earlier highs after Turkey said it was working to broker an agreement between Kyiv and Moscow to halt attacks on energy infrastructure and Black Sea shipping. Ukraine has indicated it would support the arrangement if Russia agrees, while the Kremlin described the proposal as a positive idea. Supply concerns remain elevated after Saudi Arabia shut its East-West pipeline, an important alternative route to exports through the Strait of Hormuz. Saudi Arabia is reportedly seeking to increase shipments through Hormuz while the pipeline is offline, though repairs could take several weeks. US Energy Secretary Chris Wright expects the pipeline to resume operations soon.

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