NY oil prices fall 1.7% on easing Middle East tensions, realising gains

New York oil prices fell on the back of easing tensions in the Middle East and profitability trading.

On the New York Mercantile Exchange, West Texas Intermediate for February delivery closed at $78.68 a barrel, down $1.36 and 1.7%.

Brent crude oil for March delivery, which is subject to international market comparisons, closed at $81.29 a barrel, down $0.74 and 0.9% from the previous session.

Israel and Palestinian militant Hamas agreed to a cease-fire the previous day, increasing the likelihood that Yemen's Houthi militias will stop attacks on oil-carrying ships, reducing geopolitical concerns in the Middle East.

Profit-taking sales, which came amid rising demand for heating oil following a cold spell in major countries such as the U.S., and rising international oil prices due to U.S. sanctions on Russia's oil industry, also helped push oil prices lower.