U.S. crude oil recovers from its worst day in two years to trade above $68.

• The decline in geopolitical risk in the Middle East has led to an increase in oil prices.
• On Monday, traders breathed a sigh of relief after Israel's anticipated retaliatory strikes on Iran on Friday did not harm the Islamic Republic's oil or nuclear facilities.
• According to Goldman Sachs, oil prices are undervalued in the short term relative to their fundamental value.

On Tuesday, U.S. crude oil experienced a rise of over 1% following a daily loss of 2% the previous day, which was the worst in two years.

Relief among energy traders was palpable on Monday following Israel's surprise attack on Iran last Friday, which did not target the Islamic Republic's oil or nuclear facilities. The U.S. crude oil contract plummeted by over 6%.

According to Goldman Sachs analyst Daan Struyven, who spoke on CNBC's "Squawk Box" Tuesday, oil prices are currently undervalued in the short term due to factors such as demand from refilling the U.S. strategic petroleum reserve and the airline industry.

Here are Tuesday's energy prices:

• Nearly 5% of U.S. crude oil is down year to date, while the December contract price is up 89 cents or 1.32% at $68.27 per barrel.
• The December contract price for oil is $72.34 per barrel, which represents a 92-cent increase or 1.29% rise. Despite this, the global benchmark has dropped more than 6% year to date.
• The price of gasoline in November was $1.9829 per gallon, which represents an increase of 0.84%. Despite this, gasoline prices have decreased by more than 5% year to date.
• The November contract price for gas is $2.21 per thousand cubic feet, which represents a 4.29% decrease compared to the previous year. To date, gas has experienced a loss of approximately 12% in value.

Despite no oil supply disruptions in the Middle East, Goldman Sachs predicts that the price of Brent will reach $77 per barrel in the fourth quarter.

In 2025, the risks are more likely to be negative, according to Struyven. Despite soft demand in China and robust U.S. production, OPEC+ plans to increase crude production in December.