Oil prices fall as risk premium fades after Gaza deal

Core Insights - Oil prices have declined to multi-month lows due to the easing of market risk premiums following a ceasefire agreement between Israel and Hamas [1][3] - Brent crude futures fell by $1.73, or 2.7%, to $63.49 per barrel, while U.S. West Texas Intermediate crude dropped by $1.71, or 2.8%, to $59.80 per barrel [1] Market Reactions - The ceasefire agreement is expected to alleviate concerns regarding crude carriers' safety in the Suez Canal and Red Sea, as noted by a commodities analyst [2] - The market's focus is shifting back to potential oil surplus as OPEC unwinds production cuts, with a smaller-than-expected output increase in November easing oversupply concerns [5] Price Trends - Weekly price changes show Brent down 1.7% and WTI down 1.9% [4] - Prices had briefly increased by about 1% earlier in the week due to stalled progress on a Ukraine peace deal, indicating ongoing geopolitical influences on oil prices [4] Supply and Demand Concerns - Analysts express that expectations for a significant increase in crude supply have not led to lower prices, indicating a complex market dynamic [6] - Concerns about a prolonged U.S. government shutdown potentially dampening oil demand in the U.S., the world's largest crude consumer, are also highlighted [6]