Oil prices fall as Russia sanctions are suspended
Oil prices declined due to the U.S. temporarily suspending certain sanctions against Russia and expectations that fuel exports will increase.
Oil prices declined on Monday due to U.S. President Donald Trump suspending certain sanctions and tariffs against Russia and expectations that Russian fuel exports could increase. Brent crude futures dropped to $107.92 a barrel, while U.S. West Texas Intermediate (WTI) fell to $100.58.
U.S. President Donald Trump temporarily suspended key sanctions and tariffs under the Graham Act, which he signed last month, via a presidential decree published on Friday. U.S. Secretary of State Marco Rubio stated that a period of up to 60 days will be used to evaluate the effects of the implementation on the global economy. Within the framework of the agreement Trump reached with Russian President Vladimir Putin, Russia is expected to begin diesel exports to the U.S. and other countries, with shipments planned to start this month at around 2.3 million barrels and rise to 7.6 million barrels monthly. Ukrainian President Volodymyr Zelenskyy, on the other hand, stated that these U.S. steps would harm his country.
Brent crude futures fell $1.94, or 1.77%, to $107.92 a barrel by 0227 GMT. U.S. West Texas Intermediate (WTI) dropped 83 cents, or 0.82%, to $100.58. KCM Trade Chief Analyst Tim Waterer noted that a softer stance on sanctions and profit-taking following recent gains limited price increases. It was reported that crude oil flows from the Gulf experienced sharp drops due to potential support for Saudi Arabia and attacks on commercial vessels.