Oil prices rise on Saudi Arabia attacks, overshadowing Trump's diesel deal
USO•Oil prices rose nearly $2 a barrel on Monday as attacks on Saudi Arabia raised supply concerns, outweighing prospects for increased diesel supplies from Russia. Brent settled at $106.65 a barrel and WTI at $93.74.
1. Attacks lift crude prices
Brent crude futures settled up $1.93, or 1.8%, at $106.65 a barrel, the highest since September 15. US West Texas Intermediate settled at $93.74, up $1.89, or 2%. The Houthi attack on Riyadh's airport and further attacks on Sunday intensified concerns about crude supplies from Saudi Arabia.
2. Tanker risks and forecasts
A tanker was struck by a drone near Oman's Sohar, and another was damaged while transiting the Strait of Hormuz, the United Kingdom Maritime Trade Operations reported. Goldman Sachs raised its December Brent forecast to $90 a barrel from $85, estimating a risk premium of just over $20 a barrel. It said WTI would likely remain low versus Brent, forecasting averages of $81 in December 2026 and $73 in 2027.
3. Diesel supply and ceasefire
Trump said Russia would immediately supply more than 300,000 metric tons of diesel to US and global markets, with more to come later. Separately, he announced a Russia-Ukraine ceasefire covering energy infrastructure; Ukraine's leader Volodymyr Zelenskiy accused Russia of violating it on Monday. In the Gulf of Mexico, Shell, Chevron and BP were seeking to redeploy personnel and restore production after Hurricane Isaias.
