Oil rises as Israel-Hamas truce talks continue

Oil prices rose on Tuesday after Israel struck Rafah in Gaza, while ceasefire negotiations with Hamas continued without a resolution, News.Az reported, citing Reuters.

Brent crude futures were up 9 cents, or 0.11 percent, at $83.42 a barrel at 0635 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 7 cents, or 0.09%, to $78.55 a barrel.

“Oil prices opened this morning with some snags in ceasefire talks between Israel and Hamas, leading market participants to price geopolitical tensions for longer,” said Yeap Jun Rong, strategist at market at IG.

Market participants will be looking forward to upcoming data releases on US crude oil inventories, Yeap added.

U.S. crude and product inventories were expected to fall last week, a preliminary Reuters poll showed on Monday. Crude stockpiles could have fallen by an average of about 1.2 million barrels in the week to May 3, based on analysts’ forecasts.

During the session, a stronger dollar capped gains in oil futures as crude is more expensive for traders holding other currencies. The dollar index (.DXY), opens a new tab, which measures the greenback against six major companies, last rose to 105.25.

Oil prices rose on Monday, partially reversing last week’s declines. Both contracts posted their biggest weekly losses in three months as the market focused on weak US jobs data and a possible period of interest rate cuts by the Federal Reserve.

Palestinian militant group Hamas agreed to a proposed Gaza ceasefire from mediators on Monday, but Israel said the terms fell short of its demands and continued strikes in Rafah as it plans to continue negotiations for a agreement.

Saudi Arabia’s move to raise official selling prices for crude oil sold to Asia, northwest Europe and the Mediterranean in June also supported prices, signaling expectations of strong demand this summer.


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