Oil prices fell on Thursday as news of a ceasefire agreement between Israel and Hamas eased geopolitical risks in the Middle East, while a stronger United States dollar added further pressure on commodities.
By 3:30 pm AEDT (4:30 am GMT), Brent crude futures slipped 34 cents, or 0.5%, to $65.91 per barrel, while U.S. West Texas Intermediate (WTI) crude declined 39 cents, or 0.6%, to $62.16.
Both benchmarks had risen more than 1% in the previous session.
U.S. President Donald Trump said Israel and Hamas had reached the first phase of a long-awaited plan for a ceasefire and hostage release, setting the stage for an end to the two-year conflict in Gaza.
Israeli Prime Minister Benjamin Netanyahu confirmed he would convene his government on Thursday to approve the agreement.
The conflict in Gaza has been a key factor supporting oil prices this year, as investors weighed the risk of potential disruption to regional oil supplies should the fighting spill over into neighbouring countries.
Elsewhere, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed on Sunday to raise output in November by a smaller amount than markets had expected, easing concerns about oversupply.
Prices had briefly gained about 1% on Wednesday to a one-week high, following stalled progress on peace talks over Ukraine that reinforced expectations of continued sanctions on Russian oil exports.
Among data releases, U.S. oil demand showed signs of strength. The Energy Information Administration reported an increase in commercial crude oil inventories of 3.715 million barrels from the previous week, greater than the 2.25 million barrel build expected.
