Oil prices fell on Monday 12 October amid hopes that a proposed energy ceasefire between Russia and Ukraine and a US diesel supply arrangement with Moscow could lead to increased Russian shipments, reported Reuters.
By 06:27 GMT, Brent crude futures had dropped by $0.11, or 0.11%, to $104.61 a barrel (bbl).
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Meanwhile, US West Texas Intermediate (WTI) crude traded at $91.36/bbl, down by $0.49, or 0.53%.
Earlier in the session, both benchmarks had declined by more than 1%.
US President Donald Trump stated that Ukraine and Russia had agreed to halt attacks on one another’s energy facilities, following a new diesel supply deal.
Trump said on Friday that Russia would supply more than 300,000t, equivalent to 2.25 million barrels (mbbl), of diesel “immediately” to US and global markets.
He added that Russia would send 500,000 additional tonnes in November and a further one million tonnes soon after.
Global daily diesel consumption is close to 29mbbl, according to the International Energy Agency (IEA).
Further details on the proposed ceasefire remained unclear.
Ukrainian President Volodymyr Zelenskiy said he was awaiting more information, while there was no immediate comment from Russian officials.
IEA executive director Fatih Birol urged member countries on Sunday to consider whether extra diesel releases might be needed, and asked those who had not yet delivered their promised supplies to accelerate their contributions, with a focus on diesel.
Despite the potential for increased Russian supply, Brent crude remained above $100/bbl amid continued instability in the Middle East.
The Houthis said they carried out an attack on Riyadh’s international airport on Saturday that resulted in 13 deaths and more than 300 injuries, with additional injuries reported in a fresh attack on Sunday.
President Trump indicated that the US was considering joining Saudi strikes against the Houthis.
Meanwhile, more tanker attacks were reported this month in the Strait of Hormuz, with incidents near Sohar anchorage, Oman, and damage to another vessel passing through the strait, according to the United Kingdom Maritime Trade Operations (UKMTO).
In the Gulf of Mexico, energy companies Shell, Chevron and bp were working to redeploy staff and restore platform production after Hurricane Isaias hit the area early on Saturday.
