SINGAPORE: Oil prices declined in global markets on Monday amid expectations of increased diesel supplies from Russia, easing concerns over fuel availability.
Brent crude futures fell by $1.54, or 1.47%, to $103.18 per barrel, while US West Texas Intermediate (WTI) crude dropped by $1.54, or 1.68%, to $90.31 per barrel, according to market data.
Diesel prices also weakened, with ICE gasoil futures falling 3% to $1,436 per barrel.
According to the International Energy Agency (IEA), global diesel consumption is estimated at approximately 29 million barrels per day, making additional supplies an important factor for the international energy market.
Despite expectations of increased diesel supplies from Russia, the ongoing conflict in the Middle East continued to support oil prices, keeping Brent crude above $100 per barrel.
Meanwhile, Goldman Sachs raised its December forecast for Brent crude prices to $90 per barrel from its previous estimate of $85. In a research note led by analyst Daan Struyven, the bank said it expected a gradual recovery in Middle Eastern oil supplies to eventually push crude prices lower. However, it warned that a renewed escalation in the conflict could pose a significant risk of further price increases.
Goldman Sachs also forecast that US West Texas Intermediate crude would average $81 per barrel in December 2026 and $73 per barrel in 2027. According to the report, elevated shipping costs between the United States and Europe have left WTI trading at an unusually large discount to Brent crude.
