WTI declines below $61.50 on cooling Middle East tensions  

• WTI price edges lower to near $61.20 in Friday's early Asian session. 
• Israel and Hamas signed an agreement to cease fire in Gaza.
• Stalled peace talks between Russia and Ukraine might cap the downside for the WTI. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.20 during the early Asian trading hours on Friday. The WTI loses traction amid easing geopolitical tensions in the Middle East. Traders will closely monitor how long the US federal government shutdown will last.

Bloomberg reported late Thursday that Israel has begun implementing a ceasefire deal in Gaza after it reached an agreement with Hamas for the release of all the hostages it holds. The ceasefire agreement calls for an end to hostilities in Gaza, Israel's partial withdrawal, and Hamas' release of hostages acquired during the war in return for hundreds of prisoners. Cooling tensions in the Middle East, the source of a third of the world's crude, drag the WTI lower. 

The US government shutdown entered its tenth day as US senators failed to pass spending proposals to reopen the federal government. US President Donald Trump said on Thursday that his administration plans to use the government shutdown to cut government programs popular with Democrats permanently. A prolonged shutdown could dampen the US economy and undermine oil demand.

On the other hand, the WTI price might receive support from concerns that the ongoing war in Ukraine could lead to additional sanctions on Russian energy exports, reducing global oil supplies. Investors believe stalled progress on a Ukraine peace deal as a sign that sanctions against Russia would continue for some time.