Crude Oil Pares Losses

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.

Crude oil fell below $93 per barrel on Tuesday, ending a three-session winning streak as investors weighed the impact of Russian diesel exports against escalating geopolitical tensions. Russia partially lifted its diesel export restrictions on October 10 following an agreement with the US, helping ease supply constraints in global fuel markets. However, US lawmakers argued that President Trump’s agreement with Russian President Vladimir Putin appeared to violate US law prohibiting Russian energy imports until Moscow ends its aggression against Ukraine. Ukrainian President Volodymyr Zelenskyy also vowed to continue strikes against Russia as Moscow persists in targeting Ukraine’s energy infrastructure, breaching the “energy ceasefire” previously announced by Trump. Meanwhile, the Trump administration faces mounting pressure to support Saudi Arabia in its fight against Iran-backed Houthi militants in Yemen following missile and drone attacks on Riyadh’s main airport.