Oil Prices Fall As Traders Weigh Russian Diesel Supplies Against Gulf Risks

Oil prices fell on Tuesday, marking their first decline in nearly a week, as traders weighed the prospect of additional Russian diesel supplies against risks to energy infrastructure and shipping in the Gulf.

Brent crude futures fell $1.18, or 1.1%, to $105.47 a barrel by 0625 GMT, while U.S. West Texas Intermediate crude futures dropped $1.17, or 1.3%, to $92.57.

Both benchmarks gained nearly $2 a barrel in the previous session, with Brent settling at its highest level since Sept. 15.

U.S. President Donald Trump said Russia had agreed to supply diesel to global markets. His administration temporarily eased sanctions on Russian diesel, potentially providing relief to tight global fuel markets.

ING analysts, however, expressed scepticism about the Russia-Ukraine energy ceasefire, citing reports of Russian strikes on Ukrainian energy targets since Trump announced the agreement.

U.S. lawmakers from both parties said Trump’s deal with Russian President Vladimir Putin appeared to violate legislation barring Russian energy imports until Moscow ends its aggression against Ukraine.

Meanwhile, concerns about Gulf energy infrastructure and shipping persisted following reported strikes by Iran-aligned Houthis on Riyadh’s international airport over the weekend and attacks on tankers near the Strait of Hormuz.

The incidents raised fears of renewed disruption to Middle East supplies following a recovery in September.

Tim Waterer, chief analyst at KCM Trade, said additional Russian diesel supplies and steadier Saudi flows were providing some relief, but concerns about further attacks on Gulf shipping and pipelines continued to dominate market sentiment, according to Arab News.

“Until we see clearer signs of de-escalation, the path of least resistance still leans higher,” he said.