Key facts
- Brent crude futures fell 1.1% to $105.47 a barrel.
- US West Texas Intermediate crude futures dropped 1.3% to $92.57 a barrel.
- Saudi Arabia's energy minister Abdulaziz bin Salman reassured markets about continued oil exports.
- Saudi Arabia is increasing oil exports despite attacks on its infrastructure.
- Analysts noted a reported Russian diesel deal volume is unlikely to significantly affect pump prices.
Crude oil prices eased on Tuesday after topping $106 per barrel yesterday, as traders assessed the impact of Houthi attacks on Saudi Arabia and a potential Russian diesel deal.
Brent crude futures were down 1.1% at $105.47 a barrel, and US West Texas Intermediate crude futures were down 1.3% at $92.57 a barrel. Saudi Arabia's energy minister, Abdulaziz bin Salman, stated earlier this week that there is no danger to oil exports from the country, calling Riyadh “the capital of energy security.” He emphasized that energy resilience is measured by the ability to continue delivering under pressure.
Despite attacks on its key pipeline, port infrastructure, and refineries, Saudi Arabia has been increasing its oil exports. Some analysts question the accuracy of official information given the escalation of attacks by Iran and the Houthis, but the global shortage of tankers supports data indicating a significant increase in ship-to-ship transfers in the Persian Gulf to move Saudi oil out of the region.
Meanwhile, the future of a diesel deal announced by President Trump with President Putin remains uncertain, with some in Congress arguing it violates sanctions against Russia. Analysts also noted that the reported volume of 4.8 million tons is insufficient to significantly impact prices at the pump.