Oil Prices Edge Higher Ahead Of Biden's Middle East Trip  

• Oil prices experienced a slight increase on Tuesday, with Brent crude futures settling up by 25 cents to $89.90 a barrel, while U.S. West Texas Intermediate crude (WTI) remained unchanged at $86.66 a barrel.
• Investors are closely monitoring U.S. diplomatic efforts and President Joe Biden's visit to Israel to gauge whether these actions will help prevent the Middle East conflict from escalating further. The uncertainty surrounding this situation has affected oil prices.
• Concerns were raised earlier in the session when Thomas Barkin, chief of the Richmond Federal Reserve Bank, noted that higher long-term U.S. borrowing costs could exert downward pressure on oil demand. Interest rate hikes aimed at curbing inflation may slow economic growth and subsequently reduce the oil demand.
• Oil prices had previously surged due to fears that the Israel-Hamas conflict might escalate and potentially impact the oil-producing region. Both Brent crude and West Texas Intermediate crude rallied last week, with Brent gaining 7.5%, marking its largest weekly gain since February. Biden's upcoming visit to Israel aims to strike a balance between showing support for Israel's actions against Hamas and rallying Arab states to prevent a broader regional conflict, particularly considering potential ramifications for oil markets.

(Source: Reuters)