NEW YORK: Oil prices fell about two per cent to a six-week low on Tuesday on rising expectations of a ceasefire in Gaza and growing concerns about demand in China.

Brent futures fell $1.39, or 1.7pc, to settle at $81.01 a barrel, while US West Texas Intermediate crude (WTI) closed $1.44, or 1.8pc, lower at $76.96.

That was the lowest close for Brent and WTI since June 7 and pushed both benchmarks into technically oversold territory for the first time since early June.

US diesel futures also settled at their lowest since June 7, while gasoline futures closed at their lowest since June 14.

In the Middle East, efforts to reach a ceasefire deal between Israel and Hamas under a plan outlined by US President Joe Biden in May and mediated by Egypt and Qatar, have gained momentum over the past month.

Israeli Prime Minister Benjamin Netanyahu told families of hostages held in Gaza that a deal to secure their release could be near even as fighting raged in the Palestinian enclave.

Biden is expected to meet Netanyahu on Thursday at the White House.

The fighting in Gaza has lent support to oil futures as investors priced in the risk of potential disruptions to global crude supply in the key producing regions of the Middle East.

Published in Dawn, July 24th, 2024