Oil prices retreat after the previous session’s gains
Oil prices slipped slightly on Tuesday after rising by nearly $2 in the previous session.
Brent crude futures fell to $106.04 a barrel. US West Texas Intermediate crude declined to $93.27.
Traders were weighing the possibility of additional diesel supplies from Russia against the risk of disruptions to energy shipments in the Gulf.
Gulf tensions continue to threaten supply routes
Recent attacks by Iran-aligned Houthi forces and incidents involving tankers near the Strait of Hormuz have raised concerns about regional energy supplies.
US President Donald Trump said Russia would supply diesel to global markets. The announcement was accompanied by a temporary easing of US sanctions.
The plan faced criticism from lawmakers in both major US political parties. Critics questioned whether the move could conflict with restrictions on Russian energy imports linked to the war in Ukraine.
OPEC highlights shipping costs and weaker demand growth
Analyst Tim Waterer said additional Russian diesel and stable Saudi supplies could ease some market concerns. However, sentiment remained tilted toward the risk of further disruptions.
OPEC reported that high shipping and insurance costs were severely affecting the efficiency of oil transportation.
The organization also revised its forecast for annual oil demand growth downward to 400,000 barrels per day.
