Oil ticks lower as Russia diesel supply prospects counter Gulf supply risks
USO•Oil prices edged lower as prospects for additional Russian diesel supplies offset concerns about attacks on Saudi Arabia and Gulf shipping. Brent fell 0.57% to $106.04 a barrel and U.S. WTI dropped 0.5% to $93.27; OPEC cut its oil demand growth forecast for the year to 400,000 barrels per day from 1.4 million.
1. Prices edge lower
Brent crude futures fell 61 cents, or 0.57%, to $106.04 a barrel, while U.S. West Texas Intermediate crude futures dropped 47 cents, or 0.5%, to $93.27. Prices had climbed nearly $2 a barrel in the previous session.
2. Supply risks remain
U.S. President Donald Trump said Russia had agreed to supply diesel to global markets, and his administration temporarily lifted U.S. sanctions on Russian fuel. The prospect of additional supply offered some relief, while attacks on Riyadh's international airport and reported tanker attacks near the Strait of Hormuz kept concerns about Gulf energy infrastructure and shipping in focus. U.S. lawmakers from both parties said the agreement appeared to violate a law barring Russian energy imports until Moscow ends its aggression against Ukraine.
3. Demand outlook cut
OPEC revised its forecast for oil demand growth this year to 400,000 barrels per day from 1.4 million at the start of the year. OPEC and non-OPEC ministers said shipping and insurance costs had risen to more than one-third of commodity value, impeding the movement of crude oil and products.
