Oil prices dropped on Tuesday after Israel accepted a proposal that reduces disputes hindering a ceasefire agreement in Gaza, helping to ease concerns over supply disruptions in the Middle East. Brent crude prices fell by 12 cents, or 2.02 dollars, or 0.15%, to $77.54, and U.S. West Texas Intermediate (WTI) futures for the nearest month, which expire on Tuesday, dropped 14 cents, or 0.2%, to $74.23 per barrel. The second-month WTI contract, which is more active in trading, fell 15 cents, or 0.2%, to $73.52. Brent dropped about 2.5% on Monday, while WTI fell 3%. Supply concerns were also eased by the increase in production at Libya’s Sharara oilfield to about 85,000 barrels per day, a move aimed at supplying the Zawiya oil refinery. The Libyan National Oil Corporation declared a force majeure on oil exports from the field on August 7 after a protester blockade reduced production, which typically stands at 300,000 barrels per day. In the U.S., a preliminary Reuters survey on Monday indicated that crude stockpiles likely fell by 2.9 million barrels last week. On the demand side, concerns over economic issues in China also weighed on oil prices, as the world’s second-largest economy showed further weakening in July, with new home prices declining at the fastest pace in nine years, slowing industrial production, declining export and investment growth, and rising unemployment.