Oil prices retreated on Tuesday, marking their first potential decline in nearly a week as markets balanced Middle Eastern supply threats against expectations of rising Russian diesel exports.
Brent crude futures fell $1.30, or 1.2%, to settle at $105.35 a barrel. Meanwhile, US West Texas Intermediate dropped $1.25, or 1.3%, to $92.49 a barrel.
The downward pressure follows recent geopolitical friction and physical infrastructure attacks in Saudi Arabia. These incidents previously drove a sustained multi-session rally across major global petroleum benchmarks.
Simultaneously, traders factored in potential relief for global middle-distillate markets through incoming diesel shipments from Russia. This expected inventory addition eased immediate tightness fears across key importing regions.
Broader macroeconomic headwinds, including persistent inflation prints and shifting central bank monetary policies, continue to complicate demand forecasts for the upcoming quarter, capping aggressive upward momentum.
Meanwhile, The Organization of the Petroleum Exporting Countries (OPEC) slashed its 2026 global oil demand growth forecast by over 70%, lowering projections from 1.4 million barrels per day down to 400,000 bpd.
