WTI Falls Below $79 as Gaza Ceasefire Prospects Improve

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $78.85 on Thursday, slightly lower due to improved expectations for a ceasefire between Hamas and Israel, which could ease geopolitical tensions in the Middle East. 

An official announced that Israel and Hamas have reached an agreement to halt fighting in Gaza and exchange Israeli hostages for Palestinian prisoners. If the conflict between Israel and Hamas ends, it would reduce Middle East tensions and lower the risk of disruptions to oil supplies in the region, which could put downward pressure on crude prices.

However, US crude oil inventories continue to decline, which could help prevent further decreases in WTI prices. According to the latest weekly report from the US Energy Information Administration, crude oil stockpiles in the US fell by 1.962 million barrels in the week ending January 10, compared to a drop of 959,000 barrels the previous week. The market had expected a decline of 1.6 million barrels.

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