- WTI prices gain ground following the failure of ceasefire talks between Israel and Hamas in Egypt.
- Israeli Prime Minister Benjamin Netanyahu declared Israel's intention to press ahead with its plans to invade the Gaza enclave of Rafah, refraining from specifying a date.
- Mexico's Pemex could reduce crude oil exports by at least 330,000 barrels per day in May.
The price of West Texas Intermediate (WTI) oil rebounds after two days of declines and approaches $86.30 per barrel during the European session on Tuesday. The rise in crude oil prices came after the failure on Monday of the latest ceasefire negotiations between Israel and Hamas in Egypt.
Previous ceasefire talks had halted a multi-session rally, causing WTI to snap its six-day winning streak. This was due to the anticipation that geopolitical tensions could subside. However, Israeli Prime Minister Benjamin Netanyahu announced on Monday that Israel intends to carry out its plans to invade the Gaza enclave of Rafah, without specifying a date. Furthermore, a senior Hamas official stated that they have rejected the latest ceasefire proposal presented by Israel during the Cairo talks.
The ongoing conflict carries the risk of attracting other countries in the region, especially Iran, an important supporter of Hamas and the third largest producer in the Organization of the Petroleum Exporting Countries (OPEC). An Iranian retaliation for the alleged Israeli attack on its consulate in Syria last week could implicate the oil market in the conflict. However, Israel has not officially claimed responsibility for the attack.
Mexico's state energy company, Pemex, plans to reduce crude oil exports by at least 330,000 barrels per day (bpd) in May. This decision will affect customers in the United States (US), Europe and Asia, resulting in a reduction in supply by a third. The move follows Pemex's directive to its trading arm, PMI Comercio Internacional, to withdraw 436,000 bpd from Maya, Istmo and Olmeca this month. This decision is intended to satisfy the needs of national refineries, since Pemex aspires to energy self-sufficiency.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
