U.S. crude oil rose more than 1% on Tuesday, one day after posting the worst daily loss in two years.

Energy traders were relieved Monday after Israel’s long anticipated retaliatory strikes on Iran last Friday spared the Islamic Republic’s oil and nuclear facilities. The benchmark U.S. crude oil contract sold off more than 6%.

But oil prices are too cheap in the near term compared to fundamentals, Goldman Sachs analyst Daan Struyven told CNBC’s “Squawk Box” Tuesday, citing demand from refeilling the U.S. strategic petroleum reserve as well as from the airline industry, Struyven said.

Here are Tuesday’s energy prices:

• West Texas Intermediate December contract: $68.27 per barrel, up 89 cents, or 1.32%. Year to date, U.S. crude oil is down nearly 5%.
• Brent December contract: $72.34 per barrel, up 92 cents, or 1.29%. Year to date, the global benchmark has fallen more than 6%.
• RBOB Gasoline November contract: $1.9829 per gallon, up 0.84%. Year to date, gasoline has pulled back more than 5%.
• Natural Gas November contract: $2.21 per thousand cubic feet, down 4.29%. Year to date, gas has lost about 12%.

Goldman Sachs expects the price of Brent to recover to $77 per barrel in the fourth quarter even without any oil supply disruptions in the Middle East.

The risks, however, are skewed to the downside in 2025, Struyven said. Demand is soft in China, U.S. production is robust and OPEC+ has plans to bring crude back to the market in December.

PayPal reported better-than-expected third-quarter earnings on Tuesday, but revenue came in a bit light of expectations. Shares were trading lower premarket.

Here’s how the company did compared to Wall Street estimates, based on a survey of analysts by LSEG:

• Earnings per share: $1.20, adjusted vs. $1.07 expected
• Revenue: $7.85 billion vs. $7.89 billion expected

Revenue increased about 6% in the quarter from $7.42 billion in the same period a year ago. PayPal reported net income of $1.01 billion, or 99 cents per share, compared to $1.02 billion, or 93 cents per share, a year earlier.

It’s the first earnings report for CEO Alex Chriss since he reached his one-year mark on the job in September. The stock is up 36% this year and 42% since Chriss joined the payments company, which at the time was mired in a deep slump due to increased competition and a declining take rate, or the percentage of revenue PayPal keeps from each transaction.

Chriss has focused on prioritizing profitable growth and better monetizing key acquisitions like Braintree, which is used by Meta for credit card processing, and payments app Venmo.

Total payment volume, an indication of how digital payments are faring in the broader economy, rose 9% from a year earlier to $422.6 billion for the quarter ended Sept. 30, and came in just above the average analyst estimate of $422.5 billion, according to StreetAccount.

“PayPal delivered strong financial and operating results during a highly productive third quarter,” Chriss said in the earnings release.

The company’s operating margin came in at 18.8%, beating the StreetAccount estimate of 17.4%. PayPal reported total active accounts of 432 million, up 1% from a year earlier, and beating the average estimate of 430.5 million.

While PayPal’s take rate slipped to 1.86% from 1.91% a year earlier, transaction margin, which is how the company gauges the profitability of its core business, rose to 46.6% from 45.4%.

For the fourth quarter, PayPal is calling for “low single-digit growth.” Analysts were expecting growth of 5.4% to $8.46 billion. The investor deck says guidance reflects a “price-to-value strategy and prioritization of profitable growth.” 

The company expects adjusted earnings per share of $1.07 to $1.11, versus the average analyst estimate of $1.10, according to LSEG.  

One of Chriss’ strategies to address the deteriorating margin was to offer merchants increased value-added services, such as connecting a couple of data points at checkout to drive down the rate of cart abandonment. That product, dubbed Fastlane, launched in August, and is a one-click payment option for online sales that can go head-to-head with Apple Pay and Shop Pay by Shopify.

In August, fintech platform Adyen made Fastlane available to businesses in the U.S., and said it plans to expand the offering globally in the future. The company also partnered with other leaders in global commerce including Fiserv, Amazon, Global Payments and Shopify as it looks to grow its share of online checkout.

The other big product launch during the quarter was PayPal Everywhere, which went live in early September. The initiative offers 5% cash back for using a PayPal debit card within the mobile app. Thus far, PayPal has seen 1 million new PayPal debit card enrollments.

Venmo’s total payment volume rose 8% in the quarter from a year earlier. DoorDash, Starbucks and Ticketmaster are among businesses now accepting Venmo as one way that consumers can pay.

“We are making solid progress in our transformation as we bring new innovations to market, forge important partnerships with leading commerce players, and drive awareness and engagement through new marketing campaigns,” Chriss said in the release.

PayPal will hold an earnings call for analysts at 8 a.m. Eastern time.

WATCH: PayPal’s crypto lead on allowing merchants to buy and sell virtual assets

British oil major BP on Tuesday reported its weakest quarterly earnings in nearly four years, weighed down by lower crude prices and lower refining margins.

The energy firm posted underlying replacement cost profit, used as a proxy for net profit, of $2.3 billion for the July-September period. That beat analyst expectations of $2.1 billion, according to an LSEG-compiled consensus.

BP reported net profit of $2.8 billion for the second quarter of the year and $3.3 billion for the third quarter of 2023.

“We have made significant progress since we laid out our six priorities earlier this year to make bp simpler, more focused and higher value,” Murray Auchincloss, CEO of BP, said in a statement.

“In oil and gas, we see the potential to grow through the decade with a focus on value over volume. We also have a deep belief in the opportunity afforded by the energy transition – we have established a number of leading positions and will continue high-grading our investments to ensure they compete with the rest of our business.”

Shares of London-listed BP have fallen over 14% year-to-date, underperforming its European rivals as investors continue to question the firm’s investment case.

BP’s third-quarter results come shortly after reports emerged the company scrapped its pledge to reduce oil and gas production by 2030, rolling back a core tenet of the firm’s ambition to achieve net zero emissions by the middle of the century — or sooner.

The move, reported by Reuters on Oct. 7, citing three unnamed sources, would be viewed as further evidence of CEO Auchincloss’s plan to prioritize near-term returns from the firm’s more profitable fossil fuel operations.

BP was also said to be targeting several new investments in the Middle East and the Gulf of Mexico to boost oil and gas output, the news agency reported.

A BP spokesperson told CNBC: “As Murray said at the start of year in our fourth quarter results, the direction is the same – but we are going to deliver as a simpler, more focused, and higher value company.”

Britain’s Shell and France’s TotalEnergies are scheduled to report quarterly results on Thursday, with U.S. majors Exxon Mobil and Chevron set to follow suit on Friday.

Last week, Norwegian oil and gas producer Equinor reported a 13% drop in adjusted operating income in the July-September period, missing analyst expectations.