Oil prices fell on Tuesday after rising by nearly $2 a barrel in the previous session, as traders assessed supply risks stemming from attacks on Saudi Arabia and the possibility of increased diesel supplies from Russia.
Brent crude futures fell 61 cents, or 0.57%, to $106.04 a barrel by 0000 GMT, while US West Texas Intermediate crude futures dropped 47 cents, or 0.5%, to $93.27 a barrel.
US President Donald Trump said Russia had agreed to supply diesel to global markets and that his administration had temporarily lifted US sanctions on Russian fuel. The sanctions had been imposed to prevent Moscow from receiving revenues that could be used in its war against Ukraine.
Additional supplies could help ease tightness in global fuel markets, limiting some of the supply concerns that have supported crude prices in recent weeks.
However, US lawmakers from both the Republican and Democratic parties said Trump’s agreement with Russian President Vladimir Putin appeared to violate a US law banning Russian energy imports until Moscow ends its aggression against Ukraine.
Tim Waterer, chief market analyst at KCM Trade, said: “New diesel supplies from Russia and steady oil flows from Saudi Arabia provide some relief, but the market still appears more concerned about the risk of further attacks on ships or pipelines in the Gulf than it is reassured by the additional supplies.”
“Until we see clearer signs of de-escalation, the path of least resistance still appears to be higher,” he added.
Concerns over the vulnerability of energy infrastructure and shipping routes in the Gulf remain in focus after Iran-aligned Houthis targeted an airport in Riyadh earlier this week, while reports have emerged of attacks on tankers near the Strait of Hormuz.
Source: Reuters
