Oil prices edged lower on Friday as supply fears faded following a ceasefire agreement between Israel and Hamas - the first phase of a plan backed by United States President Donald Trump to end the war in Gaza.
By 3:45 pm AEDT (4:45 am GMT), Brent crude futures slipped 29 cents, or 0.4%, to US$64.93 per barrel, while U.S. West Texas Intermediate (WTI) crude declined 24 cents, or 0.4%, to $61.27.
Both benchmarks had finished the previous session 1.6% and 1.7% lower, respectively, as Israel and the Palestinian militant group Hamas signed a ceasefire agreement in the first stage of a U.S.-brokered plan to end the conflict.
Under the deal, ratified by Israel’s government on Friday, fighting will halt, Israel will partially withdraw from Gaza, and Hamas will release all remaining hostages captured in its initial attacks, in exchange for hundreds of prisoners held by Israel.
ANZ analysts said: “This presents a major step toward ending the two-year war that raised the risk of supply disruptions in the oil market.
"This saw the focus move back to the impending oil surplus, as OPEC proceeds with the unwinding of production cuts.”
On a weekly basis, both Brent and WTI were up around 0.6%.
