The futures of Brent and US oil initially rose more than $1 per barrel on Tuesday, after the US Department of Energy said that oil production would grow less than expected, but then gave up some of the gains amid talks of a possible prolonged ceasefire in the Gaza War.
Brent oil futures closed at $78.59 per barrel, up $0.60, or 0.77%, while US West Texas Intermediate (WTI) oil futures rose $0.53, or 0.73%, to $73.51.
In its short-term energy outlook, the Department of Energy said that US production will grow by 170,000 barrels per day (bpd) this year, down from the previously expected increase of 290,000 bpd.
US Secretary of State Antony Blinken, on a trip to the Middle East to seek an end to the Gaza War, said that Hamas’ response to a ceasefire proposal was being assessed on Tuesday.
“There is cautious optimism in the market that we will see a ceasefire,” said John Kilduff, partner at Again Capital LLC.
