Oil prices rise with Middle East tensions, econ data in focus

Investing.com-- Oil prices rose slightly in Asian trade on Tuesday, recovering some lost ground as focus remained squarely on renewed ceasefire talks between Israel and Hamas, while anticipation of key economic data this week kept sentiment subdued.

Crude markets saw some profit-taking on Monday, amid reports that Israel had withdrawn troops from some parts of Gaza, while also meeting with Hamas in Egypt for new ceasefire talks. But oil prices remained close to five-month peaks as reports showed that Israel-Hamas talks remained deadlocked, while uncertainty over Iran potentially opening up a new front against Israel also remained in play. 

These factors kept crude buoyant on Tuesday. Brent oil futures expiring in June rose 0.6% to $90.89 a barrel, while West Texas Intermediate crude futures rose 0.6% to $86.0 a barrel by 20:51 ET (00:51 GMT). 

Oil markets keep Middle East tensions in focus 

Fears of worsening geopolitical conditions in the Middle East were a key point of support for crude over the past month, especially as Iran threatened military action against Israel over an alleged strike on an embassy in Syria. 

The prospect of an immediate ceasefire between Israel and Hamas also remained fleeting, given that the two parties have failed to reach an agreement despite repeated efforts by the U.S. and its allies to broker peace. 

Oil prices were supported by the notion that worsening conditions in the Middle East will disrupt production from the oil-rich region. Houthi strikes on vessels in the Red Sea have already disrupted some oil supplies. 

Any more supply disruptions are likely to further tighten global oil markets. The outlook for oil markets was further tightened by the Organization of Petroleum Exporting Countries and allies recently maintaining its pace of production cuts until end-June. 

Inflation data, rate signals also in focus

Anticipation of key inflation data from the U.S. and China limited any major moves in crude prices. 

U.S. consumer price index inflation data is due on Wednesday and is widely expected to factor into the Federal Reserve’s outlook on interest rates. The minutes of the Fed’s March meeting are also due on Wednesday.

Chinese consumer and producer inflation readings are due on Thursday, and are expected to offer more cues on a deflationary trend in the world’s largest oil importer.

The readings are also expected to offer more cues on the Chinese economy after some positive purchasing managers index readings for March.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.8% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: