Oil falls on Russian supply hopes
Oil prices started the week lower after US President Donald Trump announced that Russia and Ukraine had agreed to halt attacks on energy facilities, while expectations of increased Russian diesel supplies added further pressure.
Brent crude fell 1.47% to $103.18 per barrel, while US West Texas Intermediate (WTI) declined 1.68% to $90.31. ICE gasoil futures, a benchmark for diesel prices, also dropped 3% to $1,436. Trump announced that Russia would initially supply more than 300,000 tons of diesel to global markets.
Expectations of additional Russian supplies weighed on oil prices, although ongoing conflicts in the Middle East and attacks on tanker traffic in the Strait of Hormuz limited the decline. International Energy Agency (IEA) Executive Director Fatih Birol said countries should consider releasing additional diesel reserves into the market. Meanwhile, Goldman Sachs raised its December Brent crude price forecast from $85 to $90 per barrel, citing geopolitical risks in the region.
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