Market Analysis

The increase in oil prices on Tuesday followed Israeli airstrikes in Rafah, Gaza, amidst ongoing ceasefire negotiations with Hamas. Brent crude futures rose by 0.28% to $83.56 per barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed 0.31% to $78.72 a barrel. 

Market analysts attribute the rise to concerns over prolonged geopolitical tensions due to stalled ceasefire talks. Investors are also eyeing upcoming U.S. crude inventories data. Preliminary forecasts suggest a potential 1.2 million barrel decrease in crude inventories for the week ending May 3. 

Oil prices rebounded partially from last week's losses driven by weak U.S. jobs data and speculations about a Federal Reserve interest rate cut. Despite Hamas agreeing to a ceasefire proposal, Israel continued strikes in Rafah, rejecting the terms. 

This ongoing conflict has heightened concerns about disruptions in Middle Eastern crude supplies, supporting oil prices. Additionally, Saudi Arabia's decision to increase crude prices for June signaled expectations of robust summer demand. 

However, gains in oil futures were tempered by a stronger dollar, making crude more expensive for traders holding other currencies. The dollar index rose to 105.18 at 0400 GMT.

Paraphrasing text from "Reuters" all rights reserved by the original author.