Oil Prices Decline Amid Russian Diesel Supply Expectations

Global oil prices retreated on Monday, with West Texas Intermediate falling 1.6% to $90.37 per barrel and Brent crude declining 1.2% to $103.43 per barrel. The downward pressure is attributed to an agreement for Russia to supply over 1.8 million tons of diesel fuel to global markets, signaling a partial reversal of its export ban. This supply increase is expected to mitigate current fuel shortages, provided that ongoing conflict does not disrupt Russian production infrastructure.

Market volatility persists due to heightened geopolitical risks in the Middle East following a Houthi missile attack on a Saudi Arabian international airport. The incident, which resulted in significant casualties, has prompted threats of military retaliation and raised concerns regarding potential disruptions to Red Sea oil supply routes and increased freight costs.

In broader financial markets, Asian equities showed mixed performance, with semiconductor stocks experiencing notable declines ahead of upcoming earnings reports. Meanwhile, the Indian rupee appreciated 1.1% against the dollar following central bank interventions designed to stabilize the currency near its recent record lows.