Oil prices saw on Tuesday an increase as doubts grew about the likelihood of a ceasefire in Gaza following ongoing talks. The prices continued to recover from their recent lows, but concerns about sluggish demand and reduced supplies still lingered.
By 20:52 ET (00:52 GMT), Brent oil futures expiring in July had risen by 0.5 percent to reach $83.73 per barrel, while West Texas Intermediate (WTI) crude futures increased by 0.6 percent to reach $78.56 per barrel.
Read more: Oil prices inch up as Saudi Arabia increases June crude prices
The sustained decline in the value of the U.S. dollar also contributed to the strength of oil prices. Weaker-than-expected nonfarm payrolls data sparked speculation about when the Federal Reserve would begin cutting interest rates again.
On Monday, several Federal Reserve officials stated that while rate cuts would eventually occur, they required further evidence that inflation was subsiding. However, recent inflation readings indicated that price pressures remained persistent. Nevertheless, the market had priced in a 48 percent chance of the Federal Reserve reducing rates in September.
While a weaker dollar has a positive impact on crude prices, the possibility of lower interest rates also contributes to an improved demand outlook for oil throughout this year.
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