Oil prices experienced an uptick in Tuesday’s trading session as geopolitical tensions in the Middle East continued to raise concerns among investors. However, gains were tempered by bearish sentiments surrounding demand and anticipation for monthly reports from oil agencies.
Brent futures for May delivery rose by 26 cents, or 0.3%, to reach $82.47 a barrel by 0408 GMT. Similarly, the U.S. crude April contract saw an increase of 17 cents, or 0.2%, reaching $78.10 a barrel.
While the ongoing conflict between Israel and the Palestinian group Hamas has not resulted in significant disruptions to oil supply, concerns have been mounting due to Yemen’s Iran-aligned Houthis attacking ships in the Red Sea and Gulf of Aden since November. The Houthis claim these attacks are in solidarity with Palestinians.
Recent airstrikes attributed to a US-British coalition targeted port cities and small towns in western Yemen on Monday. Additionally, the Houthis reported targeting the “US ship Pinocchio” in the Red Sea with missiles on Tuesday.
Despite these geopolitical tensions, the oil market’s gains are restrained by concerns over weaker demand and increasing supply from producers outside the Organization of Petroleum Exporting Countries (OPEC). Serena Huang, head of APAC analysis at Vortexa, noted, “Bearish demand sentiments and growing non-OPEC supply leave little room for the market to be bullish on oil prices at this time.”
The market remains watchful of developments in the Middle East and the potential impact on global oil supply and prices amidst broader economic uncertainties.
Source: REUTERS
