Brent crude futures fell $0.61, or 0.57%, to $106.04 a barrel on Tuesday, according to Reuters, giving back part of a gain of nearly $2 in the previous session. US West Texas Intermediate (WTI) fell $0.47, or 0.5%, to $93.27 a barrel.
Brent had settled at $106.65 on Monday, its highest level since 15 September 2026.
Russian diesel pulls prices lower
US President Donald Trump said Russia had agreed to supply diesel to global markets. The Trump administration also temporarily eased US sanctions on Russian fuels, which had been meant to limit the revenue Moscow uses to finance its war in Ukraine. The extra supply could ease tightness in global fuel markets.
The arrangement drew criticism from members of the US Congress on both sides of the aisle. They argued the move could violate legislation that bars Russian energy imports until Moscow ends its aggression against Ukraine.
Gulf risk keeps traders cautious
Attacks on oil tankers near the Strait of Hormuz and on Saudi Arabia have raised fears of disruption to energy distribution in the Middle East. Iran-aligned Houthi militants attacked Riyadh International Airport over the weekend. The attacks threaten the recovery in Middle Eastern energy supplies that took place in September.
The Strait of Hormuz is one of the world's most important energy transit routes, so any disruption to shipping there could affect global oil supplies and prices.
Tim Waterer, chief market analyst at KCM Trade, said fresh Russian diesel and steadier Saudi flows were giving the market some relief. He said traders remain more worried about further attacks on vessels or pipelines in the Gulf than reassured by the added supply. "Until we see clearer signs of de-escalation, the bias in price movements remains to the upside," he said.
Ministers from OPEC member countries and the non-OPEC producers in the Declaration of Cooperation also warned that shipping and insurance costs have reached unprecedented levels, exceeding one-third of commodity values. The surge in costs has hampered the smooth distribution of crude oil and its derivatives.
OPEC trims its demand growth forecast
On demand, OPEC cut its forecast for global oil consumption growth this year to 400,000 barrels per day, from an initial estimate of 1.4 million barrels per day. OPEC Secretary-General Haitham Al Ghais announced the revision on Monday.
We reported earlier that OPEC+ held November oil output quotas steady as the Middle East war kept Brent above $100. More price coverage is in Markets.
