Oil prices inch lower amid cease-fire hopes in Gaza

By Zeynep Beyza Kilic

Oil prices fell slightly on Tuesday, with renewed hopes of a cease-fire in Gaza offset by a weak US dollar and a tight global supply outlook.

International benchmark Brent crude traded at $86.01 per barrel at 10.29 a.m. local time (0729 GMT), a 0.08% drop from the closing price of $86.08 per barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $81.86 per barrel at the same time, a 0.11% fall from the previous session that closed at $81.95 per barrel.

On Monday, the UN Security Council voted for a resolution demanding an immediate cease-fire in Gaza during the Islamic holy month of Ramadan, which already began on March 11 and is set to end on April 9.

As many as 14 countries voted in favor of the resolution, presented by 10 elected members of the Council, while the US abstained from voting.

A cease-fire, though temporary, acts to alleviate tension in the region and offer safe passage to vessels via the Red Sea, one of the world's most frequently used sea routes for oil and fuel shipments.

Meanwhile, the weakening of the US dollar against other currencies limited the drop in oil prices.

The US dollar index, which measures the US dollar's value against other currencies, fell 0.35% to 104.11. The weak dollar is expected to enhance demand by making oil cheaper for other currency holders.

Output cuts in Russia, one of the world's biggest producers, due to attacks on fuel refineries put upward pressure on prices.

The Novoshakhtinks refinery, the largest in the southern part of Russia, was shut down following Ukrainian drone attacks, the Russian governor of the Rostov region, Vasily Golubev, stated on Telegram last week.

The official said drones fell on the territory of the Novoshakhtinks refinery, which has an annual oil processing capacity of 7.5 million tons.