Oil prices experienced a decline on Monday following the decision by US President Donald Trump to waive sanctions and tariffs on Russia, a move that could potentially result in an increase in Russian fuel exports. Brent crude futures declined by $1.43, equivalent to a 1.30% decrease, reaching $108.43 per barrel by 2340, following a settlement at its peak since May 19 on Friday. US West Texas Intermediate crude was at $100.88 a barrel, down 53 cents, or 0.52%. On Friday, Trump enacted an executive order that waives significant sanctions and tariffs as stipulated by the Graham Act, which he had previously signed at the behest of legislators aiming to exert pressure on Moscow regarding its ongoing conflict in Ukraine.
However, Secretary of State Marco Rubio stated that the president will take up to 60 days to evaluate the economic implications of the waiver. The decision follows an agreement between Trump and Russian President Vladimir Putin regarding the export of diesel to the United States. Ukrainian President Volodymyr Zelenskiy stated that these actions by the US will adversely affect Ukraine. Brent crude oil briefly reached $110 a barrel on Friday for the first time since May, as escalating tensions and security threats in the Middle East heightened concerns regarding the safety of shipping and the tightening of global energy supplies.
Intensified attacks on commercial vessels have led to a significant reduction in Gulf crude flows, which plummeted to approximately 8.5 million barrels per day on a seven-day average last week, down from over 20 million bpd the previous week, according to analytics firm in a Friday note. Last week, there were at least 10 confirmed incidents involving commercial vessels, as reported. In a significant development in the ongoing Middle East conflict, Egypt has expressed its readiness to extend support to Saudi Arabia, aimed at bolstering its security and stability in the face of threats posed by the Iran-aligned Houthis in Yemen.
