Oil prices fell on Tuesday after rising about two percent in the previous session, as traders closely monitor developments in the Russia-Ukraine conflict and its potential impact on fuel supplies from the region. Brent crude futures dropped 16 cents or 0.23 percent to $68.64 per barrel by 0005 GMT, while US West Texas Intermediate crude futures lost 16 cents or 0.25 percent to $64.64. Both contracts had risen to their highest levels in over two weeks on Monday. Analysts at IG noted that risks related to crude oil prices seem inclined to continue rising, especially if prices remain above the resistance level between $64 and $65. Oil prices rose Monday due to concerns about supply disruptions after Ukraine targeted Russian energy infrastructure, with traders expecting further US sanctions on Russian oil. Barclays said in a client note that oil prices are still moving within a narrow range amid geopolitical volatility and relatively solid fundamentals.

US President Donald Trump threatened again to impose sanctions on Russia if no progress is made toward a peace agreement with Ukraine in the next two weeks. Traders are also awaiting the latest US inventory data from the American Petroleum Institute later today, with expectations of declines in crude and gasoline stocks and a possible increase in distillate inventories.