Oil prices fell slightly on Friday following Israel and Hamas's plan to end the war in Gaza
Oil prices fell slightly on Friday after falling 1.6% in the previous session as the risk premium waned following the Gaza agreement.
Brent crude futures were down 7 cents to $65.15 a barrel by 03:38 GMT. WTI fell 2 cents to $61.49.
Israel and the Palestinian militant group Hamas signed a ceasefire agreement on Thursday as part of the first phase of Trump's plan to end the war in Gaza.
Under the agreement, approved by the Israeli government on Friday, hostilities will end, Israel will partially withdraw from Gaza, and Hamas will release all hostages it captured in the offensive that led to the war in exchange for hundreds of hostages held in Israel.
Both indices have gained about 1% week over week after a sharp decline last week.
Prices rose nearly 1% on Wednesday to their highest level in a week as progress on the Ukraine peace deal stalled. This is seen as a sign that sanctions against Russia, the world's second-largest oil exporter, may continue.
The Gaza ceasefire agreement is a key step toward ending the two-year war, which has increased the risk of oil supply disruptions.
As OPEC continues to finalize production cuts, current conditions have shifted focus to the looming oil glut. A lower-than-expected November production increase agreed upon by OPEC+ on Sunday eased some concerns about a supply glut.
Market expectations for a sharp increase in crude oil supply did not lead to a significant price drop. The recent increase in production was lower than previously feared, leading to a slight price increase throughout the week.
Investors are also concerned that a prolonged US government shutdown could negatively impact the American economy and negatively impact oil demand in the country, the world's largest crude consumer.
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