Oil Retreats After Early Tuesday Surge
Oil prices surged in early trading Tuesday. American crude rose as much as 5% to about $109 a barrel.
Prices then eased later in the morning. CNBC reported falling prices.
MSNBC reported a surge. The two reports described different points in the trading day.
Housing starts came in weaker than expected. This also raised concerns about demand.
Traders hoped for diplomatic progress in the Middle East. CNBC said attacks on commercial ships escalated in recent weeks.
The attacks involved ships passing through the Strait of Hormuz. At least 18 vessels were attacked in the strait over two weeks.
The cost to rent tankers there has risen fourfold since September. MSNBC said markets are adjusting to new conditions in the Middle East.
MSNBC said higher oil prices threatened to raise gas costs. The midterm elections are two weeks away.
Key Terms 4
- Housing starts Number of new homes that builders begin construction on.
- Diplomatic progress Steps toward peace or agreement through talks between countries.
- Strait of Hormuz A narrow sea passage linking the Persian Gulf to open waters.
- Midterm elections Elections for Congress held halfway through a president's term.