Oil Prices Drop Amid Russian Diesel Supply Concerns and Saudi-Houthi Conflict
Oil prices fell on Tuesday as traders evaluated potential increases in Russian diesel supplies to global markets, alongside concerns over the escalating conflict between Saudi Arabia and Houthi rebels. Brent crude futures dropped by 1.48% to $105.05 per barrel, while U.S. West Texas Intermediate (WTI) futures declined 1.57% to $92.27. President Donald Trump defended the administration's decision to temporarily ease restrictions on Russian diesel exports despite criticism from lawmakers over potential impacts on sanctions against Russia for its war in Ukraine. Goldman Sachs noted that increased Russian diesel supplies would likely have a minimal effect, estimating only a $1–$2 per barrel reduction in wholesale prices due to refinery outages and limited production capacity. Global diesel markets remain strained with declining inventories and exports. U.S. diesel stocks are down 14% year-on-year while China's visible stock levels fell by 11%. The conflict escalated after Houthi rebels attacked an airport in Riyadh, killing at least 12 people.