Opening on 12/10, Brent oil price decreased 1,3% to 103,4 USD a barrel. US WTI crude fell 1,5% to 90 USD.
On 11/10, US President Donald Trump unexpectedly announced that Moskva and Kyiv agreed to stop attacking each other's energy infrastructure. Ukrainian President Volodymyr Zelenskiy stated he was still waiting for details of the agreement, while Russia has not commented on the matter.
Two days prior, Trump also stated that Russia would supply over 4 million tons of diesel to the global market, following an agreement with Russian President Vladimir Putin. The Kremlin later confirmed this.
This information led investors to anticipate a partial easing of global supply pressure. "The current question is the authenticity and potential longevity of these agreements. Without clearer evidence, oil prices are unlikely to fall significantly," Tim Waterer, an analyst at KCM Trade, told Reuters.
Despite these developments, conflict in the Middle East has kept Brent prices above 100 USD a barrel. Iran-backed Houthi forces in Yemen claimed responsibility for an attack on Riyadh international airport (Arab Saudi) last Saturday, which resulted in 13 fatalities and over 300 injuries. Arab Saudi officials also reported additional injuries from another attack at the airport last Sunday.
President Trump announced last weekend that the US was considering supporting Arab Saudi in attacking the Houthi. This suggests a widening conflict following the US-Israel attack on Iran in February.
This month, several attacks on oil tankers passing through the Strait of Hormuz also threaten to slow the recovery of Middle Eastern crude oil exports. Goldman Sachs raised its December Brent oil price forecast to 90 USD a barrel, up from 85 USD previously.
"We maintain our baseline scenario that Middle East supply eventually adapting will pull crude oil prices down. However, the risk of escalating conflict makes upside risks dominant," analysts stated.
In the Gulf of Mexico (US), major energy corporations such as Shell, Chevron, and BP are working to return personnel and restore operations at oil rigs after Hurricane Isaias made landfall in the US early on 10/10.
Ha Thu (according to Reuters)
