[Oil prices] Brent settles down 0.9%; WTI rises 0.4%

[Financial News]  

International oil prices ended mixed on the 13th (local time).
Brent crude, the international oil benchmark, for December delivery fell 0.9%, while West Texas Intermediate crude oil (WTI), the U.S. benchmark, for November delivery rose 0.4%.
Oil prices moved in opposite directions amid analysis that the resumption of Russia’s diesel exports, agreed upon by U.S. President Donald Trump and Russian President Vladimir Putin on the 9th, would have little impact on the global diesel market in practice.
Markets also watched the exchanges between Saudi Arabia and Yemen’s Houthi rebels closely, while remaining on the sidelines.
Brent crude for December delivery settled 0.90% lower than in the previous session, at $105.69 a barrel.
WTI for November delivery, meanwhile, ended trading up 0.43% at $94.14 a barrel.
Markets believe that even if Russia resumes diesel supplies, the export volumes currently agreed upon would have only a negligible impact.
In an analysis note on the 12th, Goldman Sachs said the 800,000 metric tons of diesel Russia had agreed to supply this month and next—about 6 million barrels—amounted to only a tiny fraction of total market demand. It forecast that this would lower diesel wholesale prices in the U.S. Gulf Coast and Europe by just $1–$2 a barrel.
Goldman also noted that the volume of Russian refining capacity shut down had surged to 3 million barrels per day since the start of the year, meaning production growth would necessarily be limited.
According to Goldman, the global diesel market remains under severe supply pressure. U.S. inventories have fallen 14% since the start of the year, while China’s have declined 11%.
The intensifying conflict between Iran-backed Houthi rebels in Yemen and Saudi Arabia is also heightening concerns about disruptions to crude oil supplies.
The Saudi-led coalition attacked oil facilities in Sanaa, the Yemeni capital controlled by the Houthi rebels, that day. In retaliation, the rebels launched ballistic missiles at locations across Saudi Arabia.
President Trump said he might ask Turkish President Recep Tayyip Erdoğan to step in as a mediator and support Saudi Arabia.

[email protected] Song Kyung-jae Reporter