Oil dips on Russian diesel concerns

Oil prices declined on Tuesday after recording new gains during the previous session, amid concerns over potential disruptions to energy supplies in the Middle East and the possibility of an increase in Russian diesel exports to global markets. US President Donald Trump announced Russia's approval to supply diesel and the temporary easing of US sanctions on Russian fuel, which could reduce market pressures and alleviate the global fuel shortage. However, the impact depends on the volume of the shipments and their continued flow. At the same time, doubts remain regarding the implementation of an agreement to halt attacks on energy facilities between Russia and Ukraine, amid criticism from Washington over the understanding with Moscow. Meanwhile, shipping and insurance costs are rising, hampering oil movement and adding to supply chain burdens.

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