Early on Tuesday, WTI crude oil prices are holding steady after having climbed more than 1% higher on the previous day over escalating geopolitical tensions concerning Iran. At the time of writing, WTI crude oil is trading at around $56.15 per barrel.
Potential threat to supply along the Gulf region after Iranian Revolutionary Guards seized a British oil tanker in the Strait of Hormuz caused oil prices to rise. However, gains remained limited over increasing worries of a slowdown in demand for oil amid lower economic growth worldwide.
On Sunday, Goldman Sachs also lowered its global oil demand forecast for 2019 to 1.275 million bpd over weakening global economic growth. Things will not start looking up in 2020 either, with the IEA estimating global demand for crude oil to reduce in 2020, leading to a possible oversupply in markets.