Global crude oil prices declined on Tuesday as expectations of increased Russian diesel supplies eased concerns about fuel availability, although geopolitical tensions in the Middle East continued to influence energy markets.
Brent crude futures fell 1% to $105.6 per barrel, while US West Texas Intermediate (WTI) futures declined by the same percentage to $92.8.
The fall followed Monday’s rally, when both benchmarks gained nearly $2 per barrel amid fears of disruptions to Gulf energy infrastructure and shipping routes.
Brent had settled at its highest level since Sept 15, reflecting heightened uncertainty surrounding global oil supplies.
Russian Diesel Supply Expectations Ease Concerns
US President Donald Trump said Russia had agreed to supply diesel to international markets, while his administration temporarily eased sanctions on Russian fuel.
The prospect of additional supplies helped reduce immediate concerns about shortages in refined petroleum markets.
Higher diesel availability could ease cost pressures across transportation, manufacturing and other energy-intensive industries.
However, uncertainty persists over the proposed Russia-Ukraine energy ceasefire.
Reports of fresh attacks on Ukrainian energy infrastructure have raised questions about whether the agreement can prevent further disruptions.
The timing and volume of additional Russian fuel shipments also remain uncertain.
Consequently, traders continue to assess whether increased Russian supplies can offset risks elsewhere.
Hormuz Tanker Attacks Keep Markets On Edge
Despite Tuesday’s decline, security concerns in the Middle East continued to support crude prices.
Attacks attributed to Iran-aligned Houthi forces in Saudi Arabia over the weekend, alongside reported tanker incidents near the Strait of Hormuz, heightened concerns about regional energy shipments.
The strategic waterway connects major Gulf oil producers with international buyers and remains critical to global petroleum trade.
Prolonged shipping disruptions could restrict supplies and increase prices if alternative transport routes prove insufficient.
Rising freight and insurance expenses are also adding pressure to international energy trade.
These additional costs can increase buyers’ expenses even when benchmark crude prices decline.
Oil markets therefore remain exposed to developments involving Russian fuel supplies, the Ukraine conflict and security conditions across the Gulf.
Further disruptions could trigger renewed price volatility despite expectations of improved diesel availability.