Oil Prices Move Higher

Crude oil pared earlier losses to trade near $95 a barrel on Tuesday amid concerns over supply risks linked to the conflict between Saudi Arabia and the Iran-backed Houthis. The militants have stepped up attacks on Saudi Arabia since last week, targeting energy facilities and airports. The Houthis attacked King Khalid International Airport in Riyadh on Saturday, while a Saudi-led coalition said it intercepted a ballistic missile fired toward the capital on Monday. Meanwhile, Iran is fortifying sensitive sites, including nuclear facilities, and rallying supporters amid concerns over possible renewed US attacks after the November midterm elections. In contrast, prospects for additional Russian energy supplies to global markets limited oil’s gains. An agreement would allow Russia to supply diesel to the US and other markets for six months. However, Goldman Sachs said the additional Russian diesel supplies were unlikely to significantly ease pressure on global fuel prices.

Crude oil pared earlier losses and was just below $94 a barrel on Tuesday, following three sessions of gains, as investors weighed renewed Middle East supply risks against the prospect of additional Russian fuel exports. Attacks on Riyadh’s international airport and tankers near the Strait of Hormuz have heightened concerns over the security of Gulf infrastructure and shipping routes. OPEC raised its forecast for global oil demand growth in 2027, citing the need to replenish inventories depleted by the Iran conflict, but lowered its 2026 outlook for a sixth consecutive time. The group also reported stronger OPEC+ production in September, led by Saudi Arabia, whose output rose by more than 2 million barrels per day to 8.372 million. Meanwhile, US President Donald Trump said Russia would supply diesel to global markets after Washington temporarily eased restrictions on Russian fuel.

Crude oil fell below $92 a barrel on Tuesday, ending a three-session advance as markets assessed the prospect of additional Russian energy supplies reaching global buyers. US President Donald Trump defended his decision to temporarily ease restrictions on Russian diesel exports for six months, following a request for Moscow to release more supplies. Trump argued that the move would benefit American consumers, despite criticism that easing restrictions could weaken sanctions imposed over Russia’s war in Ukraine. Meanwhile, the proposed energy ceasefire between Russia and Ukraine remained uncertain. Trump acknowledged violations of the truce, while Ukrainian President Volodymyr Zelenskyy said Kyiv would continue striking Russian targets as attacks on Ukrainian energy infrastructure persist. Also, Iran-backed Houthi militants in Yemen launched attacks on Riyadh’s King Khalid International Airport over the weekend, increasing pressure on Washington to address the conflict.