NEW DELHI, Oct 12 - Oil prices slipped on Monday on expectations of more Russian supplies after United States (US) President Donald Trump said Ukraine and Russia had agreed to halt attacks on each other's energy facilities following a US diesel-supply deal with Moscow.
Brent crude futures fell ¢11, or 0.11 per cent, to US$104.61 a barrel by 0627 GMT while US West Texas Intermediate crude was at US$91.36 a barrel, down ¢49, or 0.53 per cent. Both benchmarks were down more than one per cent earlier in the session.
ICE gasoil futures fell three per cent to US$1,436 per metric ton after Trump said on Friday that Russia will immediately supply more than 300,000 metric tons (2.25 million barrels) of diesel to US and global markets.
He added that Russia would supply another 500,000 tons in November and a further one million tons "immediately thereafter". According to the International Energy Agency, the daily diesel consumption globally is forecast at close to 29 million barrels.
Trump also unexpectedly announced on Sunday that Ukraine and Russia had agreed to an energy ceasefire, but Ukrainian leader Volodymyr Zelenskiy said he was still waiting to see details of the energy ceasefire while Russia did not comment.
KCM Trade chief analyst Tim Waterer said that the announcements eased some of the immediate supply pressure.
"Questions remain over the validity and longevity of any such ceasefire, and without clearer evidence that it will actually hold, the extent of the pullback is likely to stay limited," he said.
On Sunday, IEA Executive Director Fatih Birol said all members should assess whether additional diesel releases are necessary and that countries that have not yet fully delivered pledged volumes should accelerate their remaining releases, prioritising diesel.
Crude supported by Middle East conflict
However, the Middle East conflict continued to support Brent crude at above US$100 a barrel.
The Houthis claimed responsibility for a Saturday strike on Riyadh's international airport that killed 13 people and wounded more than 300, while Saudi authorities reported that people were injured in a new attack on the airport on Sunday.
On Saturday, Trump said that the US was considering joining Saudi strikes on the Houthis in the conflict, a spillover from the wider war with Iran that the US and Israel launched in February.
In addition, more attacks on tankers sailing through the Strait of Hormuz have been reported so far this month, threatening to dampen a recovery in Middle East crude exports seen in September.
The United Kingdom Maritime Trade Operations reported over the weekend that a tanker was struck by a drone near Sohar anchorage, Oman, while another was damaged by an unknown projectile while transiting the Strait of Hormuz.
Goldman Sachs raised its Brent crude price forecast for December to US$90 a barrel, up from US$85 previously, its analysts led by Daan Struyven said in a note.
"We maintain our base case that continued adaptation of Mideast supply will eventually reduce crude oil prices, while potential renewed escalation still poses significant net upside risk," they said, estimating a risk premium of just over US$20 a barrel.
"We forecast WTI prices, which are unusually low vs Brent because of high US-Europe shipping costs, to average $81 in December 2026 and $73 in 2027," the analysts added.
In the Gulf of Mexico, energy majors Shell, Chevron, and BP were seeking to redeploy personnel and restore production at their platforms after Hurricane Isaias made landfall early on Saturday.
