Oil prices fell on Tuesday as markets weighed an executive order from US President Donald Trump that waived some sanctions and tariffs tied to Russian energy exports, while attacks on Saudi Arabia and Yemen kept fears of Middle East supply disruptions in view.
Brent crude futures fell 49 cents, or 0.45 per cent, to $109.06 a barrel by 0010 GMT. The US West Texas Intermediate crude (WTI) contract for November delivery, set to expire on Tuesday, eased 0.33 per cent to $103.32. The more-active December contract was down 46 cents, or 0.47 per cent, at $98.08.
Brent rose as high as $110.70 per barrel in the previous session, its highest since May 20.
An executive order issued by Trump on Friday night waived key Russia-related US sanctions and tariffs, including duties on the country's goods and penalties for buying its oil and gas. However, Trump said on Saturday he has yet to announce a final decision on the matter, while Secretary of State Marco Rubio said officials want more time to evaluate the situation.
Russia's crude oil production increased by 65,000 barrels per day in September to 8.43 million bpd, but remained some 870,000 bpd below a year ago, the International Energy Agency said last week.
"While the prospect of additional Russian diesel supply offers some theoretical relief, traders appear far more focused on the ongoing risk of further damage to energy infrastructure across the Gulf region," Tim Waterer, KCM Trade chief analyst, said.
Yemen's Iran-aligned Houthis said on Monday they carried out several attacks against Saudi energy, airport and military targets, including an Aramco site in Yanbu, the Shaybah oilfield, King Khalid International Airport in Riyadh and Abha airport. Saudi authorities did not immediately confirm the claims and Reuters could not independently verify them.
Meanwhile, 58 people were killed and more than 200 were injured after an attack on Monday by the Houthis on a government security forces training camp in Yemen's Shabwa province.
The renewed attacks heightened fears about regional stability and underscored continuing risks to energy supply from the region, keeping oil prices above $100 a barrel.
In the US, crude oil stockpiles were expected to have fallen last week along with product inventories, a preliminary Reuters poll showed on Monday.
Source: Reuters
-Agencies
