Written by: Fatima Younes
Crude oil prices fell significantly during today's trading, reaching the level of $107 per barrel, following the US administration's decision to suspend some sanctions and tariffs imposed on Russia, a move expected to contribute to boosting Russian fuel exports to global markets.
Brent crude futures recorded a clear decline of $1.94, by 1.77 percent, to settle at $107.92 per barrel. In the same context, US West Texas Intermediate crude saw a decline of about 83 cents, by 0.82 percent, to record about $100.58 per barrel in international markets.
Developments in US-Russian measures
This decline came after US President Donald Trump signed an executive order to suspend major sanctions and tariffs on Russia. Secretary of State Marco Rubio announced that the US administration would study and evaluate the economic impact of these measures over a period of up to 60 days.
These economic and political developments are based on an agreement between Trump and Russian President Vladimir Putin, which aims to organize the export of diesel to the United States and other countries by about 2.3 million barrels this month, with expectations that these quantities will gradually rise to reach about 7.6 million barrels per month.
The impact of geopolitical tensions on markets
Global energy markets are experiencing a state of contrast and constant volatility, amid traders' interaction with two main factors; the first is the resumption of Russian oil and fuel supplies based on recent diplomatic understandings between Washington and Moscow.
The second factor is the escalating military tensions and sporadic attacks targeting shipping lines and commercial vessels in the Middle East. Despite the recent drop in prices, these geopolitical fears provide a minimum level of support for prices for fear of any potential disruption in global shipping lines and supply chains.
