Oil prices tumbled more than 4 per cent to a near two-week low on Tuesday due to a weaker demand outlook and after a media report said Israel would not strike Iranian nuclear and oil sites, easing fears of a supply disruption, Reuters reported.
Brent crude futures settled down $3.21, or 4.14 per cent, at $74.25 a barrel. West Texas Intermediate futures finished down $3.25, or 4.4 per cent, at $70.58 a barrel.
Both benchmarks had earlier fallen by $4, reaching their lowest since the beginning of October, after settling about 2 per cent lower on Monday.
"We're seeing an unwinding of the war premium we built up last week," said Phil Flynn, senior analyst at Price Futures Group.
"What we're seeing, it's not really about supply, it's about the risk to supply and demand."
Brent and WTI are down about $5 so far this week, nearly wiping out cumulative gains made after investors became concerned Israel could strike Iran's oil facilities in retaliation for Tehran's October 1 missile attack.
bd-pratidin/GR
