Written by: Islam Al-Saqqa
Oil prices witnessed a decline during Monday's trading, following US President Donald Trump's decision to lift sanctions and tariffs imposed on Russia, which may pave the way for increased Russian fuel exports to global markets.
Crude oil price movements
Brent crude futures fell by $1.43, or 1.30%, to reach $108.43 per barrel. US West Texas Intermediate (WTI) crude also recorded a drop of 53 cents, equivalent to 0.52%, to reach $100.88 per barrel.
Details of the US decision and political repercussions
This decline came after President Trump signed an executive order on Friday lifting key sanctions and tariffs under the Graham Act. Secretary of State Marco Rubio indicated that the President will take up to 60 days to evaluate the economic impact of this exemption.
This move follows an agreement between Trump and Russian President Vladimir Putin to export diesel to the United States. For his part, Ukrainian President Volodymyr Zelenskyy stated that these American measures will harm Ukraine.
Middle East tensions and energy supplies
Brent crude had touched the $110 per barrel level last Friday, driven by security concerns in the Middle East region. Kpler analytics firm explained that intensive attacks on commercial vessels led to a decrease in oil flows from the Gulf to about 8.5 million barrels per day during the past week, compared to more than 20 million barrels per day the week before, with 10 confirmed incidents involving commercial vessels recorded.
