08:50 AM EDT, 10/10/2025 (MT Newswires) -- Oil prices eased early Friday, extending losses for a second day as traders priced in lower geopolitical risk following a U.S.-backed ceasefire in Israel's war on Gaza.

West Texas Intermediate crude oil for November delivery was last seen down US$0.95 to $60.56 per barrel, while December Brent oil was down $0.97 to $64.25.

The drop comes as Middle East tensions calm with Israel and the Hamas militant group agreeing to a ceasefire in their two-year war in Gaza, easing concerns over a widening conflict in the region that could cut into oil supplies from the Persian Gulf.

"Oil steadied near recent lows, holding the week's sharpest drop amid cautious optimism over easing Middle East tensions and improved supply prospects ... Israel's approval of a peace framework, including hostage and prisoner exchanges, supported sentiment," Saxo Bank noted.

The provisional end to the conflict cuts into the risk premium accorded to oil, but the Ukrainian attacks on Russian oil infrastructure that have caused the No.2 exporter to restrict shipments of refined products amid domestic shortages are still offering support.

Still, supply remains robust with OPEC+ returning more that 600,000 barrels per day of production cuts to market even as the global economy slows. In its short-term energy outlook released Tuesday, the Energy Information Administration said global inventories will rise through 2026, predicting an average Brent oil price of $52 per barrel in 2026.