Aug 20 (Reuters) - Oil prices fell about 1% to a two-week low on Tuesday as Middle East supply concerns eased after Israel accepted a proposal to tackle disagreements blocking a ceasefire deal in Gaza, and as economic weakness in China weighed on fuel demand.
Brent futures for October delivery fell 46 cents, or 0.6%, to settle at $77.20 a barrel. U.S. West Texas Intermediate (WTI) crude for September delivery fell 33 cents, or 0.4%, to settle at $74.04 on its last day as the front-month.
The more actively traded WTI futures for October , which will soon become the front-month, lost about 49 cents to $73.17 per barrel.
U.S. Secretary of State
Antony Blinken visited Egypt and pushed for progress toward a Gaza ceasefire and hostage release deal. Major differences still need to resolved in talks this week.
"There was probably around $4 to $8 of geopolitical premium baked into the price of crude oil before negotiations began on Thursday," Bob Yawger, director of energy futures at Mizuho, said in a note.