Oil prices resumed their downward trajectory amid cease-fire talks in the Middle East after increasing more than 2% in the previous session due to output and export halt in Libya and Russian airstrikes on energy infrastructure in Ukraine.
International benchmark Brent crude fell 0.27% to $80.14 per barrel at 10.51 a.m. local time (0751 GMT), down from the previous session's close of $80.36.
US benchmark West Texas Intermediate (WTI) decreased by 0.32% to $77.17 per barrel, after closing at $77.42 in the prior session.
The decline in oil prices was influenced by the ongoing calls for a cease-fire in the Middle East, home to a vast majority of global oil reserves.
The heads of churches in Jerusalem expressed deep concern Monday over Israel's ongoing war on Gaza, calling on the parties to quickly reach an agreement for a cease-fire.
In a statement, the Patriarchs and Heads of Churches in Jerusalem said that despite repeated calls for a cease-fire and de-escalation, 'the situation in our beloved Holy Land (Palestine) has only continued to deteriorate.'
They urged 'the warring parties to heed our calls and those of the international community (UNSC Resolution 2735) to reach a rapid agreement for a cease-fire' that could end the war, release all captives, and return displaced people to their homes and areas.
However, global supply concerns influenced by the suspension of oil production in Libya and Russia's attacks on Ukrainian energy infrastructure limited further price decline.
The eastern-based Libyan Government, headed by Osama Hammad has declared 'force majeure' in all oil fields, ports, and institutions and the suspension of oil production and exports due to disagreements over the management of the Central Bank on Monday.
Hammad claimed that the 'takeover council' appointed by the Presidential Council had 'raided' the Central Bank in Tripoli.
Arguing that the intervention in the Central Bank led to a complete halt in all financial transactions of the state, Hammad decided to stop oil production and exports until further notice.
Meanwhile, Russian airstrikes targeting the energy infrastructure in Ukraine lent upward support to oil prices.
Ukrainian Prime Minister Denys Shmyhal said that various types of drones and missiles were used by Russia, adding that Ukraine's power grid operator Ukrenergo has been forced to introduce emergency power cuts to stabilize the country's energy system.
Describing the attack as 'one of the largest' in a statement on X, Ukrainian President Volodymyr Zelenskyy, went on to say that there is 'significant damage' to Ukraine's energy infrastructure and called on Western partners to lift restrictions on using long-range capabilities.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr