2023.12.0512:04:00UTC+00Crude Oil Prices Slip After Early Gains

Crude oil prices gained in early trading on Tuesday amidst geopolitical tensions in the Middle East as well as waning concerns amount demand. However, the rally turned short-lived as prices corrected and fell below Monday's closing levels.

The Dollar's strength, as well as the anxiety ahead of the release of jobs data from the U.S. and inflation data from China also dragged down crude oil prices. Markets expect the additions to non-farm payrolls in the U.S. in the month of November to rise from the previous month's levels. The deflationary situation in China, which is expected to remain steady, impacted sentiment for the black liquid. Uncertainty over the recently announced voluntary production cuts also added to the volatility.

Data to be released by The American Petroleum Institute later in the day is expected to show a decline of 2.3 million barrels in crude oil inventories during the week ended December 1. Inventories had dropped by 0.82 million barrels in the previous week.

Official data for the same period by the U.S. Energy Information Administration due on Wednesday, is also expected to show a reduction of 2.3 million barrels, as compared with the addition of 1.6 million barrels in the previous week.

Brent Oil Futures for February settlement is currently trading at $77.94, having slipped 0.12 percent from the previous close of $78.03. The day's trading ranged between $79.09 and $77.79, versus the 52-week trading that ranged between $70.06 and $97.69.

West Texas Intermediate Crude Oil Futures for January settlement also dropped 0.07 percent from the previous close of $73.04 to trade at $72.99. Prices ranged between a high of $74.08 and a low of $72.85. The 52-week trading range was between $63.64 and $95.03.