Escalating Tensions in Gaza Fuel Oil Price Increase

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

OPEC+ Production Decline Adds to Market Volatility

Further influencing the market, 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 downward for 2025, signaling potential challenges ahead for the oil market.

Price Movements Highlight Market Sensitivity

By early Tuesday, West Texas Intermediate (WTI) for June's settlements had risen by 1.38% to $63.27 per barrel, with Brent for June's deliveries not far behind, climbing 1.21% to $67.05 per barrel. These movements underscore the oil market's heightened sensitivity to geopolitical tensions and supply adjustments.