Oil falls on Russian supply prospects, Saudi-Houthi tensions limit losses

October 13, 2026 (MLN): Oil prices declined on Tuesday as investors assessed the potential impact of increased Russian diesel supplies on global fuel markets, while escalating tensions between Saudi Arabia and Houthi militants in Yemen limited the losses.

Currently, Brent crude futures is down, 1.17%, at $105.40 per barrel, according to data by Mettis Global.

West Texas Intermediate (WTI) crude futures is down by $1.31, or 1.40%, to $92.43 per barrel by [11:53 am] PST.

U.S. President Donald Trump defended his administration’s decision to temporarily relax restrictions on Russian diesel supplies for six months, despite criticism from lawmakers across party lines who warned that the move could weaken sanctions imposed on Moscow over its war in Ukraine, according to CNBC.

In a post on Truth Social on Monday, Trump argued that the European Union had spent billions of dollars importing Russian energy, maintaining that his administration’s decision was in the interests of American consumers.

However, Goldman Sachs said the additional Russian supplies were unlikely to provide substantial relief to global fuel markets.

The bank estimated that an increase of 800,000 metric tons, equivalent to approximately 6 million barrels, could reduce wholesale diesel prices by only $1 to $2 per barrel in the U.S. Gulf Coast and Europe.

The bank also highlighted a sharp rise in Russian refinery outages, which increased by 3 million barrels per day compared with the previous year, constraining Moscow’s ability to boost output.

Global diesel supplies remain tight, with U.S. inventories down 14% year-on-year and visible stocks in China declining 11%, according to Goldman Sachs.

The bank attributed the persistent shortage to seven consecutive months of falling global diesel production, alongside a 1.4 million-barrel-per-day, or 20%, annual decline in seaborne exports.

Meanwhile, geopolitical risks continued to support oil prices by limiting the extent of the decline. Iran-backed Houthi militants in Yemen attacked King Khalid International Airport in Riyadh, Saudi Arabia, on Saturday, killing 12 people and injuring more than 300 in a major escalation of regional tensions.

Copyright Mettis Link News