SINGAPORE: Oil prices rose on Tuesday after Israel struck Rafah in Gaza, while negotiations for a ceasefire with Hamas remained unresolved, according to Reuters.
Brent crude futures were up 9 cents, or 0.11 percent, at $83.42 per barrel at 9:35 a.m. Saudi time, while US West Texas Intermediate crude futures increased 7 cents, or 0.09 percent, to $78.55 per barrel.
Oil prices rose this morning, with some obstacles in the truce talks between Israel and Hamas prompting market participants to price in the possibility of geopolitical tensions lasting longer,” said Yeap Jun Rong, IG’s market strategist.
Market participants will be watching for upcoming US crude inventories data releases, Yeap added.
According to a preliminary Reuters poll released Monday, US crude oil and product stockpiles were expected to fall last week. Analyst forecasts suggest that crude inventories fell by about 1.2 million barrels on average in the week ending May 3. During the session, a stronger dollar capped gains in oil futures, making crude more expensive for traders with other currencies. The dollar index, which compares the greenback to six major peers, ended at 105.25.
Oil prices had settled higher on Monday, partially reversing last week’s declines. Both contracts had posted the steepest weekly losses in three months as the market focused on weak US jobs data and the possible timing of a Federal Reserve interest rate cut.
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