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%, to $77.13 a barrel at 0320 GMT. Front month U.S. West Texas Intermediate crude futures, which expire on Tuesday, were at $73.87 a barrel, easing 50 cents, or 0.7%.
The more actively traded second month contract was last down 49 cents or 0.7% at $73.17 a barrel. Brent had fallen about 2.5% on Monday, while WTI eased 3%.
“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.”
