Oil prices fell on Tuesday on fading fears of a prolonged outage of the largest U.S. fuel pipeline system, while Indias coronavirus crisis showed scant sign of easing, with a sevenday average of new cases at a record high.
U.S. West Texas Intermediate WTI crude futures fell 45 cents, or 0.69, to 64.47 a barrel at 0654 GMT, after gaining 2 cents on Monday.
Brent crude futures dropped 43 cents, or 0.63, to 67.89 a barrel, after climbing 4 cents on Monday.
Oil was retreating amid weak sentiment as Asian stocks suffered a techled selloff and the market shrugged off concerns about a temporary shutdown of the Colonial Pipeline, said DailyFX strategist Margaret Yang.
Colonial Pipeline, which transports more than 2.5 million barrels per day bpd of gasoline, diesel and jet fuel, said on Monday it was working on restarting in phases with the goal of substantially restoring operational service by the end of the week.
It has begun manually operating its 700,000barrelperday multiproduct fuel line between Greensboro, North Carolina, and Maryland for a limited time using existing inventories.
The rally in oil prices was shortlived as the Colonial Pipeline disruption seems it will not have a prolonged impact, Edward Moya, senior market analyst at OANDA, said in a Tuesday note.
The U.S. gasoline futures contract and U.S. heating oil futures, which spiked after the outage, have retreated to preFriday levels on the prospect of the restart.
Meanwhile, sentiment is weighed down by the…