Oil Prices Climb as Gaza Ceasefire Hopes Fade

Crude oil prices experienced a significant increase of over 1% on Tuesday, as hopes for a ceasefire between Israel and Hamas in Gaza were dashed. Hamas rejected Israel's interim truce proposal, stating it would release all hostages only if Israel ends the war and withdraws its troops from Gaza. Meanwhile, Israeli Prime Minister Benjamin Netanyahu declared that Israel would not yield to Hamas's demands.

OPEC+ Production Decline Adds to Market Tensions

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

Market Reaction

By early Tuesday, West Texas Intermediate (WTI) for June's settlements had risen by 1.38% to $63.27 per barrel, while Brent for June's deliveries saw a 1.21% increase, reaching $67.05 per barrel.