Oil prices rose again during early trading in Asia on Tuesday, compensating for some of the previous day's losses as investors continued to worry about the ongoing war in Gaza between Israel and Hamas that may escalate into a broader conflict in the oil-exporting region, which could cause potential supply disruptions.
Price action
By 0032 GMT, Brent crude futures rose 70 cents, or 0.8 percent, to $90.53 per barrel, while US West Texas Intermediate crude futures increased 71 cents, or 0.8 percent, to $86.20 per barrel.
The two benchmark crude oil prices fell more than two percent yesterday, Monday, as diplomatic efforts intensified in the Middle East, the largest oil supply region in the world, to contain the conflict in Gaza, which allayed investors’ fears about supply disruptions.
Yesterday, the Palestinian Hamas movement released two Israeli women who were among more than 200 hostages it held during its attack on October 7 in southern Israel, while sources said that the United States advised Israel to refrain from a ground attack in the Gaza Strip, according to Reuters.
But Israel continued its bombing of Gaza yesterday after launching air strikes on southern Lebanon overnight.
Israel bombed hundreds of targets in the Gaza Strip from the air while its soldiers clashed with Hamas during incursions into the besieged Palestinian enclave, where the death toll is increasing.
A preliminary poll conducted by Reuters yesterday showed that US crude inventories are expected to rise last week while distillate and gasoline inventories will decline.
The poll was conducted ahead of reports from the American Petroleum Institute industry group, scheduled for release at 2030 GMT Tuesday, and the Energy Information Administration, the statistical arm of the US Department of Energy, at 1430 GMT Wednesday.
