Oil prices edge lower as traders monitor Middle East tensions

Oil futures moved lower early Tuesday as U.S. traders prepared to return from the Presidents Day holiday weekend, while downside was seen limited by continued worries over the Middle East as Iran-backed Houthi rebels continued to attack cargo ships.

Price moves

• West Texas Intermediate crude for March delivery
  CL.1,
  -0.45%

  CLH24,
  -0.45%
  fell 31 cents, or 0.4%, at $78.88 a barrel on the New York Mercantile Exchange. April WTI
  CL00,
  -1.11%

  CLJ24,
  -1.11%,
  the more actively traded contract, was off 87 cents, or 1.1%, at $77.59 a barrel. WTI futures didn’t settle Monday due to the holiday, but closed Friday at the highest since Nov. 6 based on the front-month contract.

• April Brent crude
  BRN00,
  -0.92%

  BRNJ24,
  -0.92%,
  the global benchmark, was off 79 cents, or 0.9%, at $82.77 a barrel after ending Monday at its highest since Nov. 6.

Market drivers

Yemen’s Houthi militants said they attacked the Rubymar cargo vessel in the Gulf of Aden, news reports said. The vessel was seen at risk of sinking. A U.S.-led coalition has led a number of airstrikes against Houthi targets in response for drone and missile attacks in the region, which have forced shippers to avoid the Red Sea. The Houthis vowed to continue their attacks.