Oil prices experienced a slight increase in Asian trade on Monday, attempting to recover from significant losses the previous week. Brent oil futures for April delivery rose by 0.4% to reach $77.61 a barrel, while West Texas Intermediate (WTI) crude futures increased by 0.3% to $72.53 a barrel.
Last week, both Brent and WTI crude witnessed declines of over 7%, influenced by various factors. Rumors of a potential ceasefire in the Israel-Hamas conflict had initially contributed to the downturn, as the conflict had provided support for crude prices due to concerns over potential supply disruptions.
However, over the weekend, no ceasefire materialized, and clashes between Israeli and Hamas forces continued. Additionally, tensions in the Red Sea, involving U.S.-led forces and the Iran-aligned Houthi group, remained a focal point. The Houthi group threatened more strikes against vessels in the region.
Amid geopolitical uncertainties, the focus remains on any developments regarding the Israel-Hamas conflict and potential ceasefire talks. Furthermore, investors are monitoring indications related to interest rate cuts in the United States, as strong labor market data and hawkish signals from the Federal Reserve have tempered expectations of early rate cuts.
Oil prices continue to be influenced by a complex interplay of geopolitical factors and economic considerations, adding volatility to the energy markets.