Oil prices inched higher on Tuesday as anticipation grew regarding U.S. President Joe Biden's upcoming visit to the Middle East. The region is currently grappling with the conflict between Israel and Hamas, and Biden's visit aims to strike a delicate balance between supporting Israel and preventing further escalation. After dropping by over a dollar on Monday, Brent futures saw a rise of $0.74 to $90.39 per barrel at 10:40 a.m. U.S. West Texas Intermediate (WTI) crude also increased by $0.69 to $87.35.

The fear of widening conflict in the Middle East has led to significant gains in both oil benchmarks, with Brent experiencing its largest weekly increase since February, climbing by 7.5%. This surge is attributed to concerns about the potential regional effects of the ongoing conflict.

In light of this, Biden's visit to Israel on Wednesday is critical as he seeks to not only show support for Israel's war on Hamas but also gather Arab states to prevent a wider conflict. The situation became more tense after Iran's OPEC-member vowed to take 'pre-emptive action' through the 'resistance front,' which includes Hezbollah in Lebanon.

Additionally, positive signs in the U.S. economy have provided a small boost to the demand outlook for crude oil. Recent economic data showcased the continued health of the consumer sector, along with tentative improvements in industrial production. Encouraging signals in domestic economic performance are always welcomed, especially considering the tightness in the current oil market.

Meanwhile, Venezuela's government and opposition are set to resume talks that were long suspended. This progress could potentially lead to the easing of Washington's sanctions on the country, according to multiple sources.

Oil prices inched higher on Tuesday as anticipation grew regarding U.S. President Joe Biden's upcoming visit to the Middle East. The region is currently grappling with the conflict between Israel and Hamas, and Biden's visit aims to strike a delicate balance between supporting Israel and preventing further escalation. After dropping by over a dollar on Monday, Brent futures saw a rise of $0.74 to $90.39 per barrel at 10:40 a.m. U.S. West Texas Intermediate (WTI) crude also increased by $0.69 to $87.35.
The fear of widening conflict in the Middle East has led to significant gains in both oil benchmarks, with Brent experiencing its largest weekly increase since February, climbing by 7.5%. This surge is attributed to concerns about the potential regional effects of the ongoing conflict.
In light of this, Biden's visit to Israel on Wednesday is critical as he seeks to not only show support for Israel's war on Hamas but also gather Arab states to prevent a wider conflict. The situation became more tense after Iran's OPEC-member vowed to take 'pre-emptive action' through the 'resistance front,' which includes Hezbollah in Lebanon.
Additionally, positive signs in the U.S. economy have provided a small boost to the demand outlook for crude oil. Recent economic data showcased the continued health of the consumer sector, along with tentative improvements in industrial production. Encouraging signals in domestic economic performance are always welcomed, especially considering the tightness in the current oil market.
Meanwhile, Venezuela's government and opposition are set to resume talks that were long suspended. This progress could potentially lead to the easing of Washington's sanctions on the country, according to multiple sources.

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