Oil Prices Climb Amidst Gaza Conflict

Crude oil prices experienced a significant rise, increasing by over 1% on Tuesday. This surge comes as hopes for a ceasefire between Israel and Hamas in Gaza fade, following Hamas's rejection of Israel's proposed truce. Hamas has stated its willingness to release all hostages on the condition that Israel ends the war and withdraws its troops from Gaza. Israeli Prime Minister Benjamin Netanyahu, however, has vowed not to yield to Hamas's demands.

OPEC+ Production Decline

In related news, OPEC+ reported a decrease in production by 37,000 barrels per day (bpd) in March, bringing total production to 41.02 million bpd. Concurrently, OPEC has adjusted its global oil demand growth forecast for 2025 downwards, signaling potential challenges ahead for the oil market.

Market Reaction

West Texas Intermediate (WTI) for June settlements saw a 1.38% increase, selling at $63.27 per barrel, while Brent for June deliveries climbed by 1.21% to $67.05 per barrel, reflecting the market's sensitivity to geopolitical tensions and supply adjustments.