jordan pulse -
Oil prices rose on Tuesday after the Israeli occupation forces bombed the city of Rafah in Gaza, while negotiations for a ceasefire with Hamas continued without reaching an agreement.
By 04:00 GMT, Brent crude futures climbed 23 cents, or 0.28%, to $83.56 per barrel. West Texas Intermediate (WTI) crude futures also rose 24 cents, or 0.31%, to $78.72 per barrel.
IG market strategist Yeap Jun Rong said, “Oil prices opened higher this morning with some obstacles in the ceasefire talks between Israel and Hamas, prompting market traders to account for the impact of geopolitical tensions that are likely to continue for a longer period.”
Yeap added that market participants are awaiting new data on U.S. crude inventories.
A preliminary survey conducted by Reuters on Monday expects U.S. crude oil and product inventories to have decreased last week.
Analysts predict that crude inventories may have dropped by about 1.2 million barrels on average in the week ending May 3rd.
Oil prices closed higher at settlement on Monday, somewhat offsetting last week’s losses. Both contracts incurred their biggest weekly losses in three months, with the market focusing on weak U.S. job data and the potential timing of a U.S. interest rate cut.
Hamas agreed on Monday to an Egyptian and Qatari proposal for a ceasefire in Gaza, but Israel said the conditions did not meet its demands and proceeded to target Rafah while planning to continue negotiations for an agreement.
The Israeli forces bombed Rafah, located at the southern edge of the Gaza Strip, by air and land, and ordered residents to leave parts of the city, which more than a million displaced Palestinians had sought refuge in.
Oil prices received support with no end declared to the war ongoing for seven months, as investors worry that regional escalation of the war could disrupt crude oil supplies in the Middle East.
Meanwhile, the rise of the dollar limited gains in oil futures, as it makes crude more expensive for holders of other currencies.
The dollar index, which measures the performance of the U.S. currency against six major currencies, rose to 105.18 points by 04:00 GMT.