Oil Market Rebounds Amid Israel-Hamas Tensions

Oil prices recovered from recent losses in early Asian trade on Tuesday, as fears remained about the Israel-Hamas conflict potentially developing into broader regional upheaval, which may lead to supply disruptions. Brent oil futures gained 0.8%, climbing 70 cents to $90.53 a barrel by 0032 GMT. Similarly, West Texas Intermediate oil futures in the United States rose 0.8%, or 71 cents, to $86.20 per barrel.

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Oil prices recovered from recent losses in early Asian trade on Tuesday, as fears remained about the Israel-Hamas conflict potentially developing into broader regional upheaval, which may lead to supply disruptions. Brent oil futures gained 0.8%, climbing 70 cents to $90.53 a barrel by 0032 GMT. Similarly, West Texas Intermediate oil futures in the United States rose 0.8%, or 71 cents, to $86.20 per barrel.

"The market is up on an adjustment after a drop in the previous two sessions and on nagging fears of possible supply disruptions in the Middle East," said Yuki Takashima, an economist at Nomura Securities.

On Monday, both benchmarks experienced a decline of over 2% as diplomatic efforts intensified in the Middle East, the world's largest oil-supplying region, aiming to contain the conflict between Israel and Hamas. These efforts helped alleviate concerns among investors about potential supply disruptions.

On Monday, Hamas announced the release of two Israeli women who were among the more than 200 captives captured during its October 7 attack in southern Israel. Meanwhile, sources said the US had persuaded Israel to postpone a ground invasion of Gaza. Despite this, Israel maintained its airstrikes over southern Lebanon, which it launched overnight.

On Monday, Israel carried out significant airstrikes on hundreds of sites in Gaza while its forces fought Hamas terrorists during assaults into the embattled Palestinian territory. The situation in Gaza continues to be grave, with increasing casualties and residents living in inhumane conditions.

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In his statement, he expressed, "Our projection for WTI entails a period of fluctuation between $80 and $90, while the global focus remains intently fixed on developments in Israel and Gaza, the production activities of OPEC, and the rate of economic rebound in China." Additionally, market participants are closely monitoring data related to stock levels in the United States.

According to a preliminary Reuters poll conducted on Monday, crude stocks in the United States were predicted to rise last week, while distillate and gasoline inventories were forecast to fall. The American Petroleum Institute's findings will be released at 2030 GMT on Tuesday, followed by statistics from the Energy Information Administration, the statistical arm of the United States Department of Energy, at 1430 GMT on Wednesday.