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Brent crude futures for May slipped 12 cents to $86.63 a barrel,
while U.S. West Texas Intermediate (WTI) crude futures fell 8
cents to $81.87 a barrel at 1005 GMT.
Brent rose 1.5% in Monday's session while WTI gained 1.6% higher
after Russia's government ordered companies to cut output in the
second quarter to meet a 9 million barrels per day (bpd)target
to comply with pledges to the OPEC+ consumer group.
Russia, a top three global oil producer and one of the largest
exporters of oil products, is also contending with recent
attacks on its oil refineries by Ukraine. Goldman Sachs analysts
estimate the attacks have knocked about 900,000 bpd of capacity
offline, possibly for weeks and in some cases permanently.
"The impact of refining disruptions on crude prices is mixed,
with a bearish effect from the decline in refinery demand and a
bullish effect from the potential reduction in Russia oil
exports," the analysts said in a note.
After a Ukrainian drone attack on Saturday, Russian oil producer
Rosneft shut a 70,000 bpd crude unit at its Kuibyshev refinery
in the city of Samara.
While the consequences of the attacks and Russian cuts seemed
unclear, a slightly weaker U.S. dollar from the previous session
somewhat supported prices.
A weaker dollar typically makes it cheaper for oil purchases in
other currencies which could bolster overall demand.
"The USD may continue to face downside pressure as the Fed is
expected to cut rates later this year, which potentially offers
the bullish factor to oil prices," said independent market
analyst Tina Teng.
Rising geopolitical premiums as the Israel-Gaza conflict
continues were also supportive of prices, though an immediate
impact on supplies in the Middle East region remains to be seen.
(Additional reporting by Colleen Howe in Beijing and Trixie Yap
in Singapore; editing by Christian Schmollinger and Jason Neely)
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