Brent crude falls below $65/barrel

Oil drilling rigs

Oil prices extended losses on Friday after falling about 1.6% in the previous session, as risk premiums in the market eased following a ceasefire agreement between Hamas and Israel.

December Brent crude futures declined 0.45%, or 29 cents, to $64.93 per barrel as of 8:07 a.m. Makkah time, while November WTI crude slipped 0.4%, or 24 cents, to $61.27 per barrel.

Under the agreement approved by the Israeli government earlier today, hostilities will cease and Israel will carry out a partial withdrawal from the Gaza Strip, in exchange for the release of all remaining hostages held by Hamas, alongside the release of hundreds of Palestinian prisoners, according to Reuters.

Markets are also awaiting the latest Baker Hughes report on US oil and gas rig counts later today to gauge the outlook for US supply.