Oil eases as markets assess potential waiver on Russian energy, Middle East supply risks

Oil prices slipped on Tuesday as market participants weighed the impact of a US executive order waiving some sanctions and tariffs on Russian energy, alongside fears of disruptions to Middle East supply. Brent crude futures dropped 49 cents, or 0.45%, to $109.06 a barrel, while US West Texas Intermediate (WTI) crude for November delivery fell 0.33%, to $103.32. The December contract saw a decline of 46 cents, or 0.47%, to $98.08.

The US West Texas Intermediate (WTI) crude futures eased 0.33% to $103.32 by 0010 GMT.

Traders remained cautious due to the ongoing threat of further attacks on energy infrastructure in the Gulf region. Yemen's Iran-aligned Houthi rebels claimed responsibility for multiple strikes on Saudi energy, airport, and military targets, including an Aramco facility in Yanbu, the Shaybah oilfield, King Khalid International Airport in Riyadh, and Abha airport. However, Saudi authorities have not yet confirmed these reports.

The recent escalation in attacks has fueled concerns about regional stability and the potential for ongoing risks to energy supply from the Middle East, which has helped maintain oil prices above $100 a barrel. US crude oil inventories were expected to have declined last week, according to a preliminary Reuters poll.