Oil ticks lower as Russia diesel supply prospects counter Gulf supply risks

Business Recorder reported that crude futures eased on Tuesday, having risen close to $2 a barrel during the prior trading day. Traders balanced the risk from strikes on Saudi Arabia against possible extra diesel from Russia. Early trading showed Brent crude at $106.04 a barrel, 61 cents or 0.57% lower, and the US benchmark, West Texas Intermediate, slipped 47 cents to $93.27.

US President Donald Trump stated that Moscow committed to providing diesel for international markets, and Washington temporarily eased sanctions on Russian fuel. Added supply could ease fuel tightness worldwide, although lawmakers from both US parties said the arrangement appears to breach a law barring Russian energy imports until Moscow halts its aggression against Ukraine.

Worries about shipping routes and energy assets in the Gulf persisted after weekend strikes on Riyadh's international airport by Iran-aligned Houthis, and tankers were reportedly attacked close to the Strait of Hormuz. Ministers from OPEC and partner countries said shipping and insurance expenses had hit record levels, above one-third of the commodity's value. OPEC Secretary General Haitham Al Ghais said on Monday the group had trimmed its demand growth estimate to 400,000 barrels daily for the current year, from 1.4 million bpd when the year began.