Oil prices down after investor profit-taking, hopes of Gaza ceasefire

Both oil benchmarks have declined with investor profit-taking after prices reached their highest level in almost two months during the previous trading session.

The international benchmark crude Brent traded at $76.88 per barrel at 1027 AM local time (0727GMT), a 0.62 percent decline from the closing price of $77.36 a barrel in the previous trading session on Thursday.

The American benchmark, West Texas Intermediate (WTI), traded at the same time at $76.84 per barrel, down 0.67 percent from Thursday's close of $77.36 per barrel.

Demand increases in the US, the world's biggest oil consumer, ensured prices hit their highest levels in almost two months on Thursday.

Strong economic recovery signals in China, the world's second-largest crude consumer, also supported price rises.

However, during Friday's early trade, market players took advantage of high prices and lowered oil prices.

Expectations of a ceasefire

Furthermore, expectations of a ceasefire in the Middle East drove prices down.

The International Court of Justice is set to issue a ruling on South Africa's request for provisional measures to end Israeli war on Gaza, where more than 26,000 people have been killed since October 7.

The ruling will follow a two-day hearing held earlier this month in which South Africa filed a case against Israel, specifically alleging Israel had violated the terms of the Genocide Convention, an international treaty that criminalises genocide and obligates state parties to pursue the enforcement of its prohibition.

Although experts predict the ruling on genocide overall could take years, it could increase the possibility of a ceasefire.

Hamas said it would abide by any ceasefire order issued by the court if Israel also complies.