Crude oil prices slide on Gaza ceasefire talks; Brent down 0.8%, WTI below $77/barrel

Crude oil prices declined in early trade on Thursday, July 25, amid talks of a ceasefire in Gaza, which could halt the 9-month-long war between Israel and Hamas, gaining pace.

Global crude benchmark Brent dropped 0.8%, with its futures for September delivery trading at $81.06 per barrel at 0245 hours GMT.

The U.S. West Texas Intermediate, the benchmark American crude, slipped below the $77-mark as its rate fell by 0.84%. Its futures were trading at $76.91 a barrel.

The decline in prices, say analysts, is linked to the reports suggesting that some progress has been made towards the Gaza ceasefire proposal put forth by US President Joe Biden. Qatar and Egypt are reportedly acting as mediators between Israel and Hamas.

Israeli Prime Minister Benjamin Netanyahu's speech before the US Congress, where he shared a vague outline of post-war Gaza, could also be one of the factors influencing the commodities market, analysts said.

"The day after we defeat Hamas, a new Gaza can emerge. My vision for that day is of a demilitarised and de-radicalised Gaza," Netanyahu said before the US lawmakers. Notably, the Israeli offensive in the Gaza Strip has led to the death of around 39,000 people, mostly civilians.

Oil rates plunge this week

Till the past week, Brent hovered above $85 per barrel, whereas WTI was above $81 a barrel. The rates plunged sharply on Monday, after US President Joe Biden announced his withdrawal from the upcoming presidential elections.

Oil prices continued to slide on Tuesday, but marked a partial recovery on Wednesday after data released by the Energy Information Administration showed a significant decline in the US oil inventories.

The country's crude stockpile was down 3.7 million barrels in the week ended July 19, which was double than the forecast of 1.6-million-barrel draw shared by news agency Reuters.