Oil prices saw a modest uptick on Tuesday following Israel’s strike on Rafah in Gaza, while negotiations for a ceasefire with Hamas continued without resolution. Brent crude futures edged up by 9 cents, or 0.11%, reaching $83.42 per barrel at 0635 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose by 7 cents, or 0.09%, to $78.55 a barrel.
Market strategist at IG, Yeap Jun Rong, noted that oil prices opened higher due to the ongoing challenges in the ceasefire talks between Israel and Hamas. This uncertainty led market participants to factor in the possibility of prolonged geopolitical tensions.
In addition to the developments in the Middle East, market observers are keenly awaiting upcoming U.S. crude inventories data releases. Analyst forecasts suggest that U.S. crude oil and product stockpiles were expected to have decreased last week, with a preliminary Reuters poll indicating an average projected decline of about 1.2 million barrels in the week to May 3.
However, gains in oil futures were capped by a stronger dollar during the session, making crude more expensive for traders holding other currencies. The dollar index, which measures the greenback against six major peers, saw an increase, reaching 105.25.
The rise in oil prices on Tuesday partially offset last week’s declines, indicating ongoing market volatility influenced by geopolitical developments and inventory data.
