Written by: Basant El-Farmawy
Oil prices declined in early Asian trading, amid expectations of an increase in Russian fuel supplies to global markets, following the decision of U.S. President Donald Trump to exempt Russia from sanctions and customs duties.
Brent crude futures fell by $1.06, or 0.96 percent, to reach $108.80 per barrel by 01:14 AM Saudi time, after the crude reached its highest level since last May 19 at the close of Friday's trading. U.S. West Texas Intermediate crude also fell by 23 cents, or 0.23 percent, to reach $101.18 per barrel.
Expectations of increased Russian supplies
The price drop came after Trump decided to exempt Russia from sanctions and customs duties, a move that could allow for an increase in Russian fuel exports to global markets. Energy markets are anticipating the repercussions of the U.S. decision on the volume of supplies, amid expectations that increased Russian exports will contribute to easing pressures on global fuel supply, which was reflected in price movements at the start of the week's trading.
Decline after weekend gains
Brent crude had ended Friday's trading at $109.86 per barrel, recording its highest level since last May, amid concerns about global energy supplies. Today's losses come after price hikes seen in crude oil at the end of last week, at a time when markets continue to assess the prospects for Russian supplies and developments affecting the supply-demand balance.
