Oil prices oscillated on Monday as the market considered possible further supplies after US President Donald Trump hailed fresh Russian diesel exports against supply-constricting signals after major attacks on Saudi Arabia. Retracing earlier losses, Brent crude futures rose 69 cents or 0.7%, to $105.41 a barrel while US West Texas Intermediate crude was at $92.42 a barrel, up 57 cents, or 0.6%. The Iran-aligned Houthis claimed responsibility for a Saturday strike on Riyadh's international airport that killed 13 people and wounded more than 300. Further attacks happened on Sunday.
In addition, more attacks on tankers sailing through the Strait of Hormuz have been reported this month, threatening to dampen a recovery in Middle East crude exports seen in September. A tanker was struck by a drone in the vicinity of Oman's Sohar, while another was damaged transiting Hormuz, the United Kingdom Maritime Trade Operations reported. Goldman Sachs, in a note, raised its Brent price forecast for December to $90 a barrel from $85, estimating a risk premium of just over $20 a barrel.
Futures for international benchmark Brent crude for December delivery rose 0.92% $105.68 a barrel. U.S. West Texas Intermediate futures for November ticked 0.95% higher to $92.72 per barrel. Prices on both benchmarks had fallen by around 1.5% earlier in the session.
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.
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, while Russia did not comment.
The International Energy Agency's Fatih Birol said all members should assess whether additional diesel releases are necessary and that countries which have not yet fully delivered pledged volumes should accelerate releases prioritising diesel.
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