Oil prices eases on strong dollar, Gaza ceasefire hopes

Oil prices declined on Friday on expectations of a contraction in global demand growth with a strong US dollar and revived Gaza ceasefire attempts, which could allay fears of supply disruptions in the Middle East.

Global oil benchmark Brent crude traded at $85.30 per barrel on Friday morning in London, a 0.56% drop from the closing price of $85.78 per barrel in the previous trading session.

The US benchmark West Texas Intermediate (WTI) traded at $80.64 per barrel at the same time, a 0.53% decline from the previous session that closed at $81.07 per barrel.

The rise of the US dollar against other currencies supported lower prices, with expectations of reduced demand due to more expensive oil trade for foreign currency users. The US dollar index increased by 0.80% to 104.25 on Friday.

A US draft resolution calling for an immediate ceasefire in

Gaza linked to the release of all hostages was to be put to a vote early Friday at the UN Security Council.

The possibility of a ceasefire in the region, where major oil producers and trade routes reside, puts downward pressure on oil prices.

"The Security Council determines the imperative of an immediate and sustained ceasefire to protect civilians on all sides, allow for the delivery of essential humanitarian assistance, and alleviate humanitarian suffering and towards that end, unequivocally supports ongoing international diplomatic efforts to secure such a ceasefire in connection with the release of all remaining hostages," the document read.

France, which has been convening closed-door sessions of the Security Council for the past two weeks on Gaza, is also preparing a draft resolution.