Oil prices continued to decline on Tuesday with renewed cease-fire hopes after US Secretary of State Antony Blinken revealed that Israeli Prime Minister Benjamin Netanyahu accepted a new proposal.
International benchmark Brent crude dropped to $77.05 per barrel at 10.24 a.m. local time (0705 GMT), down by 0.79% from the previous session’s close of $77.66. US benchmark West Texas Intermediate (WTI) decreased by 0.81% to $73.06 per barrel, after closing at $73.66 in the prior session.
News positive stories surrounding the cease-fire talks in the Middle East, where the majority of global oil reserves are located, ease supply concerns in the markets and aid the decrease in oil prices.
On Monday Blinken, who arrived in Israel on Sunday evening to advance efforts to reach a cease-fire deal, said Israeli Prime Minister Benjamin Netanyahu had accepted a new ‘bridging proposal’ for a Gaza cease-fire and prisoner swap deal.
Though Hamas said the new proposal meets Netanyahu’s conditions, ‘particularly his refusal of a permanent cease-fire, a complete withdrawal from the Gaza Strip.’
The US, Egypt and Qatar held cease-fire talks in the Qatari capital Doha last week, where they presented Israel and Hamas with the proposal to further narrow ‘remaining gaps in a manner that allows for a swift implementation of the deal.’
As a next step, Blinken said Hamas and Israel need to come together under the mediation of the US, Egypt and Qatar and reach a decision on how to implement the commitments and complete the process.
Officials are now set to gather in the Egyptian capital Cairo for negotiations this week, the White House announced on Monday.
Meanhwile, data indicating a slowdown in the economy of China, the world’s largest oil importer, continues to push oil prices down by increasing concerns that demand in the country will also slow down.
