Escalating Tensions in Gaza Fuel Oil Price Increase

Crude oil prices experienced a significant rise, surpassing 1%, as hopes for a ceasefire between Israel and Hamas dwindled. Hamas has outright rejected Israel's proposal for a temporary truce, insisting on the complete withdrawal of Israeli forces from Gaza as a condition for releasing hostages. In response, Israeli Prime Minister Benjamin Netanyahu has firmly stated that Israel will not yield to Hamas's demands.

OPEC+ Reports Production Decline

Adding to the market's volatility, OPEC+ announced a reduction in its March production by 37,000 barrels per day, bringing the total to 41.02 million barrels per day. Concurrently, OPEC has adjusted its global oil demand growth forecast for 2025 downward, signaling potential challenges ahead for the oil market.

Market Reaction

West Texas Intermediate (WTI) for June settlements saw a 1.38% increase, trading at $63.27 per barrel, while Brent for June deliveries climbed 1.21% to $67.05 per barrel, reflecting the market's immediate response to these developments.