Oil prices fluctuate on Trump's Russian diesel comments, attacks on Saudi
USO•Brent rose 0.7% to $105.41 a barrel and U.S. WTI gained 0.6% to $92.42 as traders weighed possible Russian diesel supplies against attacks on Saudi Arabia and tankers near the Strait of Hormuz.
1. Crude prices rise
Oil prices fluctuated on Monday as markets weighed possible additional supplies against signals of supply disruption. Brent crude futures rose 69 cents to $105.41 a barrel, while U.S. West Texas Intermediate gained 57 cents to $92.42.
2. Attacks raise supply concerns
The Houthis claimed responsibility for a Saturday strike on Riyadh's international airport that killed 13 people and wounded more than 300; further attacks took place on Sunday. A tanker was struck by a drone near Oman's Sohar, and another was damaged while transiting the Strait of Hormuz. Goldman Sachs raised its December Brent forecast to $90 a barrel from $85, estimating a risk premium of just over $20.
3. Diesel supplies in focus
Gas oil futures fell 4.3% to $1,419.5 per metric ton after Donald Trump said Russia would immediately supply more than 300,000 metric tons of diesel to U.S. and global markets. Analyst Tamas Varga said the immediate impact was questionable given reduced Russian refining capacity, while a partial lifting of Russia's diesel export ban could release 500,000 tons onto international markets. Trump also announced an energy ceasefire between Ukraine and Russia; Volodymyr Zelenskiy said he was waiting for details, and Russia did not comment.
