Oil prices fell on Thursday traders went on a profit taking dive from the 2% gains in the previous session after U.S. Federal Reserve indicated an rates hike in March.
Crude oil prices has been on the surge as tension grew between Russia’s motives on Ukraine.
WTI crude futures slipped 0.56% to $86.87 per barrel while Brent futures inched down by 0.57% to $89.45 per barrel.
“Continued supply challenges and mounting Russia-Ukraine tensions continue to support crude oil prices. It is down slightly today but I think it is nothing more than a technical move,” said Howie Lee, economist at OCBC in Singapore, as reported by Reuters.
While the Russia-Ukraine tensions have a role in lifting oil prices, “real supply challenges both within OPEC and the U.S. … have been the main drivers in pushing the market higher,” Lee said, referring to the Organization of the Petroleum Exporting Countries (OPEC).