Oil prices fall as traders assess Russian diesel supply prospects and Saudi-Houthi conflict
Oil prices fell as investors assess potential supply disruptions against prospects of more Russian diesel entering global markets.
TL;DR
- Oil prices decreased as investors considered the potential for more Russian diesel entering global markets.
- Brent crude futures fell 1.48% to $105.05 a barrel, and U.S. WTI futures dropped 1.57% to $92.27.
- President Trump defended easing restrictions on Russian diesel supplies, stating it was beneficial for Americans.
- The agreement allows Russia to supply diesel to U.S. and global markets for six months.
- Goldman Sachs believes additional Russian diesel supplies are unlikely to significantly lower global fuel prices.
- Global diesel markets are strained, with U.S. inventories down 14% and China's visible stocks down 11% year-on-year.
- A Houthi militant attack in Riyadh resulted in casualties and was seen as a major escalation.