Oil prices fall following cease-fire announcement, surged OPEC output

(MENAFN) Oil prices declined on Thursday after a cease-fire agreement between Israel and Hamas was announced, alongside a report revealing higher crude production from the Organization of the Petroleum Exporting Countries (OPEC).

Brent crude, the international benchmark, fell by 0.4 percent, trading at USD81.30 per barrel at 10:32 AM local time (0732 GMT), down from USD81.61 at the previous session's close.

Meanwhile, the US benchmark, West Texas Intermediate (WTI), decreased by 0.3 percent, settling at USD78.90 per barrel, compared to its previous closing price of USD79.14.

Qatari premier and Foreign Minister Mohammed bin Abdulrahman Al-Thani confirmed the cease-fire agreement during a press conference in Doha, with the deal set to take effect on Sunday.

The agreement includes an initial 42-day phase, which involves the release of 33 Israeli detainees in exchange for Palestinian prisoners. This marks a significant development on the 467th day of Israel’s military operation in Gaza, which has resulted in the deaths and injuries of 156,000 Palestinians, most of whom are women and children.

The cease-fire has eased concerns over oil supply disruptions in the Middle East, a key region holding a substantial portion of the world’s oil reserves, contributing to the drop in oil prices.

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