Crude oil futures settle higher on supply concerns

Crude oil futures magnify their gains and ended higher for second straight session on Tuesday on supply concerns due to the disruptions in the Red Sea route and amid uncertainty about a cease-fire in the Israel-Hamas war. U.S. President Joe Biden said ‘My national security advisor tells me that we're close - close but not done yet. My hope is by next Monday we will have a cease-fire.’ The President said that there's an agreement that the Israelis would not engage in activities during Ramadan, giving time to get all the hostages out. Traders are also looking ahead to the OPEC+ meeting, scheduled to take place later in the week. The group is expected to extend production cuts into the next quarter.

Benchmark crude oil futures for April delivery rose $1.29 or 1.66% to settle at $78.87 a barrel on the New York Mercantile Exchange. Brent crude for April delivery was up by $1.12 or 1.36% to $83.65 per barrel on London's Intercontinental Exchange.