By Zeynep Beyza Kilic
Oil prices declined on Friday on expectations of a contraction in global demand growth with a strong US dollar and revived cease-fire attempts, which could allay fears of supply disruptions in the Middle East.
International benchmark Brent crude traded at $85.30 per barrel at 10.06 a.m. local time (0706 GMT), a 0.56% drop from the closing price of $85.78 per barrel in the previous trading session.
The American 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 at 10.02 a.m. local time (0702 GMT).
A US draft resolution calling for an immediate cease-fire in Gaza linked to the release of all hostages will be put to a vote early Friday at the UN Security Council.
The possibility of a cease-fire 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.