Oil Prices Rise as Gaza Tensions Increase, Chances Of Gaza Truce Dosen't Look Good

Oil Prices Rise as Chances Of Gaza Truce Dosent Look Good

Oil Prices Rise as Gaza Tensions Increase: On Monday, oil futures rose after Saudi Arabia raised June crude prices, reinforcing fears the Israel-Hamas conflict could worsen in the key oil-producing region due to the lack of a ceasefire deal in Gaza.

As of 0852 GMT, Brent crude futures were up 73 cents, or 0.9%, to $83.69 per barrel, while U.S. West Texas Intermediate crude futures were up 84 cents, or 1.1%.

With weak U.S. jobs data and the possibility of a Federal Reserve interest rate cut, both futures contracts posted their steepest weekly loss in three months last week.

In a 'limited scope' operation, Israel's military ordered Palestinian civilians to evacuate Rafah on Monday.

Israel's plans to extend its operation into Rafah risk derailing a potential ceasefire agreement and rekindling Middle Eastern geopolitical tensions that had appeared to be easing said IG markets analyst Tony Sycamore.

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Oil prices also eased as talks for a Gaza ceasefire continued.

This summer, Saudi Arabia raised its official selling prices (OSPs) for crude sold to Asia, Northwest Europe, and the Mediterranean.

Due to tighter supplies this quarter, Saudi Arabia raised its June OSPs.

Israel and Hamas failed to reach a conclusive agreement over the weekend regarding a possible truce.

Brent option skews are at their most bearish in nearly two months, with the discount of calls to puts at its widest since March as fears of a wider regional conflict fade.

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