Oil prices fall on Mideast ceasefire hopes

STORY: The conflict in Gaza has rocked oil markets, sending prices higher.

Traders have feared an unpredictable escalation, potentially hitting supplies in the region.

On Wednesday, however, there were signs of those concerns easing.

U.S. and international oil prices fell on growing hopes for a ceasefire.

That follows a renewed push by Egypt to revive talks between Israel and militant group Hamas, which runs Gaza.

Benchmark crude prices fell over 1% in early European trade in response, down for a third straight day.

Other factors also weighed on the market.

New figures showed a rise in U.S. oil stocks, defying forecasts for a fall.

The country also saw its biggest monthly increase in production for over three years.

Keeping oil from slipping any further was a Reuters survey pointing to a fall in output from OPEC nations.

That reflects lower exports from Iran, Iraq and Nigeria.

Back in January, the oil producing group of nations and allies agreed voluntary cuts to output in a bid to prop up prices.