Oil Prices Climb as Gaza Ceasefire Hopes Fade

Crude oil prices experienced a significant uptick, rising over 1% on Tuesday. This surge comes as hopes for a ceasefire between Israel and Hamas in Gaza were dashed. Hamas has outright rejected Israel's proposal for a temporary truce, stating their readiness to release all hostages only if Israel ends the war and withdraws its troops from Gaza. Meanwhile, Israeli Prime Minister Benjamin Netanyahu has firmly stated that Israel will not yield to Hamas's demands.

OPEC+ Reports Production Decline

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

Market Reaction

The market's response was immediate, with West Texas Intermediate (WTI) for June's settlements seeing a 1.38% increase to $63.27 per barrel at 4:40 am ET. Shortly after, Brent crude for June's deliveries also rose by 1.21%, reaching $67.05 per barrel.