Oil prices closed lower on Thursday as Yemen's Houthi group is expected to halt attacks on Red Sea shipping and investors weighed strong US Retail Sales data.
Brent crude fell 74 cents (0.9%) to $81.29 a barrel after rising 2.6% in the previous session.
Meanwhile, West Texas Intermediate (WTI) crude fell $1.36 (1.7%) to $78.68 a barrel after rising 3.3% on Wednesday.
Maritime security officials expect the Houthi group to announce an end to attacks on ships in the Red Sea after a ceasefire agreement in the war in Gaza.
The attacks have disrupted global shipping and forced shipping companies to take longer and more expensive trips around southern Africa for more than a year.
According to John Kilduff, a partner at Again Capital, news of the Gaza ceasefire revived the mood and some took advantage of the fall in oil prices.
However, investors remained cautious as the Houthi leadership is still scrutinizing the implementation of the ceasefire agreement and will resume its attacks if Israel violates it.
US Secretary of State Antony Blinken said a ceasefire in the Gaza Strip scheduled for Sunday was in place despite a slowdown in the talks.
Elsewhere, US crude oil futures extended losses as investors digested the latest data supporting the Fed's cautious approach to cutting interest rates this year.
