This Tuesday saw a subtle downturn in oil prices, driven by a robust U.S. dollar and escalating tensions in the Middle East, specifically due to Israel’s military actions in Rafah.
Throughout the trading day, prices wavered, reflecting investor reactions to the complex interplay of global currency strengths and regional instability.
The trading session concluded with West Texas Intermediate (WTI) for June delivery dipping by 0.13%, closing at $78.38 per barrel on the New York Mercantile Exchange (Nymex).
Meanwhile, Brent crude for July delivery decreased by 0.20% to end at $83.16 per barrel on the Intercontinental Exchange (ICE).
After Israel secured a key route to Egypt, the U.S. briefly paused military supplies to Israel due to the Gaza bombings, indicating a complex geopolitical influence on global markets.
Amid these developments, investors were also tuned to the U.S. Department of Energy‘s announcement requesting the purchase of 3.3 million barrels of oil.
This strategic move, aimed at replenishing the U.S. Strategic Petroleum Reserve in October, further influences broader market dynamics.
Such conditions underscore the volatile nature of oil markets, where geopolitical events can swiftly alter economic forecasts and investor strategies.