New Delhi: Global oil prices fell on Monday, October 12, as expectations of increased Russian fuel supplies eased immediate shortage concerns, despite escalating tensions in the Middle East and fresh attacks on oil tankers.
Brent crude futures fell 11 cents, or 0.11 per cent, to USD 104.61 per barrel by 6:27 am GMT, while US West Texas Intermediate (WTI) crude fell 49 cents, or 0.5 per cent, to USD 91.36 per barrel.
Both benchmarks fell by more than 1 per cent earlier in the trading session.
The decline followed US President Donald Trump's announcement that Russia and Ukraine agreed to suspend attacks on each other's energy infrastructure.
However, Ukrainian President Volodymyr Zelenskyy said he was awaiting details of the proposed ceasefire, while Moscow did not publicly confirm the ceasefire.
Trump also announced a diesel supply arrangement with Russia, saying that Moscow would immediately supply more than 300000 metric tonnes of diesel to US and international markets.
Under the announcement, Russia would supply an additional 500000 tonnes in November, followed by another million tonnes.
The prospect of increased fuel availability eased some immediate market concerns, and European gasoil futures fell about 3 per cent.
Nevertheless, continued instability in the Middle East prevented crude prices from falling further.
The United Kingdom Maritime Trade Operations reported two attacks on commercial tankers over the weekend.
One vessel was reportedly struck near Oman's Sohar anchorage, while another was damaged as it passed through the Strait of Hormuz, a major route for international oil shipments.
The incidents raised concerns that further disruptions could hinder the recovery of Middle Eastern crude exports.
Investment bank Goldman Sachs raised its December Brent crude forecast from USD 85 to USD 90 per barrel, citing continuing geopolitical risks.
Analysts said uncertainty over the proposed Russia Ukraine energy ceasefire and the prospect of further escalation in the Middle East could keep oil markets volatile.
For oil importing countries such as Pakistan, sustained high international crude prices could raise import costs and further pressure domestic fuel prices and inflation.
