Oil prices ease as US-Russia diesel deal hopes reportedly offset Middle East attacks
USO•Brent fell 0.6% to $105.98 a barrel while WTI was steady at $93.74, as hopes for a US-Russia diesel export deal offset concerns about Middle East attacks. The Kremlin denied a direct link between the deal and Ukraine peace negotiations.
1. Oil prices ease
Brent futures were down 67 cents, or 0.6%, at $105.98 a barrel, while US West Texas Intermediate crude futures held steady at $93.74. The Kremlin said it saw no direct link between a deal on Russian diesel exports to the US and Moscow’s stance on Ukraine peace talks. A report said US envoys had presented the deal to Ukrainian officials as part of an effort to draw Russia back into negotiations.
2. Supply risks and output
A Saudi-led coalition urged civilians to evacuate a fuel site in Sanaa before a planned military operation. Concerns also remained over Gulf energy infrastructure and shipping after attacks near Riyadh and the Strait of Hormuz. OPEC said OPEC+ production rose about 900,000 barrels per day in September to 39.07 million barrels per day, driven by an increase from Saudi Arabia.
3. Economic outlook
The IMF warned that a reversal of the AI investment boom, rising debt and a prolonged Middle East conflict could threaten growth and financial stability. US inflation reports were due Wednesday and Thursday; traders saw a 19% chance of a Federal Reserve rate hike in October and an 85% chance of an increase in December.
