HOUSTON/SINGAPORE- Oil prices edged lower on Tuesday as Israel accepted a proposal to tackle disagreements blocking a ceasefire deal in Gaza, helping ease worries about supply disruptions in the Middle East.
Brent crude fell 53 cents, or 0.7 percent, to $77.13 a barrel.
Front month US West Texas Intermediate crude futures which expire on Tuesday, were at $73.87 a barrel, easing 50 cents, or 0.7 percent . The more actively traded second month contract was last down 49 cents or 0.7 percent at $73.17 a barrel.
Brent had fallen about 2.5 percent on Monday, while WTI eased 3 percent.
“Prices seem to find some headwinds from geopolitical developments in the Middle East and China’s demand outlook,” said Yeap Jun Rong, market strategist at IG, referring to weak Chinese economic data which cast doubts on the country’s oil demand prospects.
“A ceasefire deal in Gaza now seems more likely than not, which saw market participants pricing out the risks of geopolitical tensions on oil supplies disruption.”
US Secretary of State Antony Blinken said on Monday that Israeli Prime Minister Benjamin Netanyahu had accepted a “bridging proposal” presented by Washington to tackle disagreements blocking a ceasefire deal in Gaza, and urged Hamas to do the same.
Also easing supply concerns, production at Libya’s Sharara oilfield has risen to about 85,000 barrels per day in a move aimed at supplying the Zawia oil refinery, two engineers working at the field told Reuters on Monday.
