Written by: Fatima Younes
Oil prices saw a decline at the start of the week's trading, affected by expectations of increased Russian fuel flows to global markets following US measures that exempted some supplies from new sanctions. In light of these developments, Brent crude fell below the $110 per barrel level it briefly touched recently, amid widespread anticipation of market trends.
Price decline thanks to US exemptions
The price of a barrel of Brent crude recorded a decline to trade below $108, while US West Texas Intermediate reached about $100.70 per barrel. This drop comes after the signing of an executive order exempting a large part of the sanctions and customs duties imposed on Russian fuel, which supports its arrival to international markets. The US administration indicated that assessing the economic effects of this step takes sufficient time to monitor the actual results of the new policies and expected flows.
Diesel supplies to Turkey and concerns about ongoing tensions
Turkish Minister of Energy and Natural Resources, Alparslan Bayraktar, announced that a portion of the Russian diesel that Moscow will offer in global markets will be directed to Turkey, which enhances local energy security, without disclosing details of quantities or the specific delivery schedule. In contrast, geopolitical concerns continue to maintain a state of caution in the markets, especially with the ongoing tensions and conflict in the Middle East and around the Strait of Hormuz, in addition to attacks that targeted energy export stations and facilities in Russia, which keeps supply forecasts fraught with challenges.
