Oil prices slipped on Monday after US President Donald Trump waived sanctions and tariffs on Russian diesel exports, a move expected to increase fuel supplies from Moscow.
Brent crude futures fell $1.94, or 1.77%, to $107.92 a barrel by 0227 GMT, after closing at their highest since May 19 on Friday. US West Texas Intermediate crude dropped 83 cents, or 0.82%, to $100.58 a barrel, following a close at a near six-month high the previous session.
The waiver came through an executive order Trump signed on Friday, removing key sanctions under the Graham Act, legislation the president had signed last month amid pressure from lawmakers seeking to penalize Russia over its war in Ukraine.
Secretary of State Marco Rubio said the administration will use up to 60 days to assess the broader economic impact of loosening these sanctions. The timing allows the US to monitor market effects before deciding on a permanent course.
The deal with Russian President Vladimir Putin allows Russia to export about 2.3 million barrels of diesel to the United States and other countries this month, with volumes rising to roughly 7.6 million barrels per month. Trump announced the arrangement publicly but did not provide further details.
Ukrainian President Volodymyr Zelenskiy condemned the US move, stating that it would harm Ukraine’s position amid ongoing conflict.
Brent crude briefly touched $110 a barrel last Friday, a level unseen since May, driven by rising tensions and security concerns in the Middle East, which threatened shipping routes and tightened global energy supplies.
Tim Waterer, chief analyst at KCM Trade, said the softer tone around sanctions combined with some profit-taking after recent gains capped oil prices in the near term. He noted the mixed messaging around the US waiver has created uncertainty in the market.
“Until the details and duration are clearer, the market is unlikely to fully price in a sustained increase in supply,” Waterer added.
Meanwhile, intensified attacks on commercial vessels have sharply reduced Gulf crude flows. Analytics firm Kpler reported that oil shipments averaged 8.5 million barrels per day over seven days last week, down from more than 20 million barrels daily the week before. At least 10 confirmed incidents targeting commercial vessels occurred during this period.
In a sign of rising regional tensions, Egypt announced its readiness to support Saudi Arabia in defending its security and stability against Yemen’s Iran-aligned Houthis.
The US waiver of Russian diesel sanctions comes amid a complex geopolitical environment, with oil markets reacting swiftly to the evolving supply dynamics and security threats in key producing regions.
According to Joy Online.
