Written by: Karim Hammam
Oil prices retreated in global markets during Monday's trading, influenced by the possibility of increased Russian fuel supplies, following the executive and political decision issued by US President Donald Trump to suspend some sanctions and customs duties imposed on Russia.
The decline of sanctions and their impact on markets
Brent crude futures saw a noticeable decline of $1.94, or 1.77 percent, to settle at $107.92 per barrel. In the same context, US West Texas Intermediate (WTI) crude fell by 83 cents, or 0.82 percent, recording $100.58 per barrel. This decline follows the US President's signing of an executive order last Friday suspending major sanctions and customs duties on Moscow, in a move aimed at redrawing the map of global energy flows.
Economic assessment and upcoming agreements
US Secretary of State Marco Rubio indicated that the US administration will conduct a comprehensive assessment of the economic impact of these measures within a period of up to sixty days. These developments coincide with an agreement reached between the US President and his Russian counterpart Vladimir Putin regarding the export of diesel to the United States and other countries by about 2.3 million barrels during the current month, with expectations that quantities will gradually rise to reach about 7.6 million barrels per month according to official announcements.
Middle East tensions and price support
On the other hand, ongoing geopolitical tensions in the Middle East, along with attacks targeting commercial vessels, have contributed to providing relative support for oil prices and preventing them from recording greater losses. These factors reflect the state of anxiety prevailing in global markets regarding the safety of shipping lanes and the stability of global energy supplies in light of the intersection of political and economic data.
