Global oil prices fell on Monday after Russia announced plans to supply more diesel to international markets, easing concerns about fuel shortages despite ongoing tensions in the Middle East.

According to Reuters, Brent crude, the international oil benchmark, fell by $1.54, or 1.47%, to $103.18 per barrel. US West Texas Intermediate (WTI) crude also dropped by $1.54 to $90.31 per barrel.

The decline followed an announcement by US President Donald Trump that Russia would immediately supply more than 300,000 metric tonnes of diesel to the United States and other international markets.

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Trump said Russia would release another 500,000 tonnes in November, followed by an additional one million tonnes.

The planned increase in fuel supplies raised expectations of improved availability on the global market, putting downward pressure on oil prices.

Trump also said Ukraine and Russia had agreed to stop attacking each other's energy facilities, raising hopes that disruptions to fuel production and supply could ease.

However, Ukrainian President Volodymyr Zelenskyy said he was awaiting details of the agreement, while Russia had not publicly commented.

Despite Monday's decline, oil prices remain high as the conflict in the Middle East continues to threaten global supplies.

Recent attacks on oil tankers travelling through the Strait of Hormuz have raised concerns about the movement of crude oil from the region, helping to keep Brent crude above $100 per barrel.

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Meanwhile, investment bank Goldman Sachs has raised its December forecast for Brent crude from $85 to $90 per barrel, citing continued risks to global oil supplies.

Oil prices could fall further if additional fuel reaches international markets and geopolitical tensions ease. However, renewed attacks or further disruptions to supplies, particularly in the Middle East, could push prices higher again.

DR/MA

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