Oil Prices on the Rise

Crude oil prices experienced a significant increase of over 1% this Tuesday. The optimism surrounding a potential ceasefire between Israel and Hamas in Gaza quickly dissipated after Hamas rejected Israel's ceasefire proposal. The group stated its readiness to release all hostages under the condition that Israel ends the war and withdraws its troops from Gaza.

Israel's Stance

In response, Israeli Prime Minister Benjamin Netanyahu declared that Israel would not surrender to Hamas's demands, further escalating tensions in the region.

OPEC+ Production Decline

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

Market Reaction

By 4:40 am ET, West Texas Intermediate (WTI) for June's settlements saw a 1.38% increase, trading at $63.27 per barrel. Shortly after, Brent crude for June's deliveries also rose by 1.21%, reaching $67.05 per barrel.