International benchmark Brent crude slipped 0.4% to $76.64 per barrel on Monday from the previous close of $ 76.93 as hopes for a ceasefire in the Middle East gained ground, easing tension in the region.
The US benchmark West Texas Intermediate (WTI) slipped 0.6%, settling at $73.12 per barrel after closing at $73.55 the previous session.
Oil prices had surged to $80.20 following an announcement on August 26 by Libya’s eastern-based government, led by Osama Hammad, that it would suspend oil production.
However, prices have remained below $80 over the past four sessions.
The recent price decline is attributed to the increased prospects of a ceasefire in the Middle East, which has alleviated market concerns about supply disruptions.
On Monday, a nationwide strike in Israel, led by the General Organization of Workers, Histadrut, heightened the urgency for Prime Minister Benjamin Netanyahu to secure an immediate ceasefire and negotiate a prisoner exchange with the Palestinian group Hamas.
The strike, which has been rapidly spreading following large-scale protests, is aimed at pushing the government to address demands for the release of hostages held in Gaza.
The massive protests, involving nearly 770,000 Israelis in cities like Tel Aviv, have intensified expectations that a ceasefire is imminent.
This sentiment has contributed to the downward movement in oil prices by easing concerns about potential supply shortages.
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