Oil Settles Lower As Prospects of Gaza Peace Trim Risk

Core Viewpoint - Oil futures are declining as a U.S.-mediated agreement aims to resolve the Israel-Hamas conflict, reducing geopolitical risks in the market [1] Group 1: Geopolitical Impact - The agreement has led to decreased fears of regional escalation that could disrupt energy supply routes [1] - Analysts suggest that this initial step may facilitate more extensive negotiations with Iran, further alleviating pressure on crude oil prices [1] Group 2: Market Dynamics - Additional downside risks for crude oil include record U.S. production levels [1] - OPEC+ is increasing output, which may also contribute to downward pressure on prices [1] - Ongoing trade tensions could negatively impact demand for oil [1]