Crude oil is falling again on Tuesday morning as prices continue their slide after last week’s surged spurred by the conflict in Yemen.
Near 7:15 am ET in New York on Tuesday, the price of West Texas Intermediate crude oil was down another 2% from Monday’s close to around $US47.70 a barrel.
Brent crude oil, the international benchmark, was also lower on Tuesday morning to around $US55 a barrel.
Last week, the price of WTI rose sharply, from around $US46 a barrel to north of $US52 a barrel after Saudi Arabia said it would begin bombing Houthi rebels in the country.
Following this news, Business Insider’s Armin Rosen outlined why war in Yemen could threaten the Bab el-Mandeb, the straights at the opening of the Red Sea and one of the world’s crucial oil chokepoints.
Other commenters in the oil market said the spike in crude prices following escalation of this conflict was an overreaction, as the oversupply dynamic that has weighed on oil prices was unlikely to abate due to this conflict.
Here’s the short-term chart in WTI on Tuesday morning.
And the chart of the last two, rocky weeks in WTI.