Business · Energy & Commodities · 3 hrs ago
Oil prices fall on hopes of Russia-Ukraine energy ceasefire
Oil prices fell on Monday after US President Donald Trump said Russia and Ukraine had agreed to stop attacking each other’s energy facilities.
The announcement followed a deal for Russia to supply diesel to the United States.
Ukrainian President Volodymyr Zelenskiy said he was waiting for details, and Russia had not commented.
The prospect of more Russian supplies eased some concerns about oil availability, but uncertainty over whether a ceasefire will hold limited the price drop.
Brent crude remained above $100 a barrel as conflict in the Middle East threatened supplies.
Attacks on tankers near Oman and in the Strait of Hormuz added to those concerns.
Oil prices may remain sensitive to whether the energy ceasefire takes effect and whether Middle East tensions escalate further.
Oil prices fell on Monday as markets anticipated more Russian supplies after Donald Trump said Russia and Ukraine had agreed to halt attacks on each other’s energy facilities.
Brent crude futures fell $1.37 to $103.35 a barrel by 0037 GMT, while US West Texas Intermediate fell $1.30 to $90.55.
The announcement followed a US diesel-supply deal with Russia, but Ukraine’s Volodymyr Zelenskiy said he was waiting to see details, and Russia did not comment.
Analysts said uncertainty over whether the ceasefire would hold could limit the price decline.
Conflict in the Middle East and reported attacks on tankers near the Strait of Hormuz continued to support oil prices.
- Who
- Russia and Ukraine, with the announcement made by US President Donald Trump.
- What
- Oil prices fell amid expectations that an energy ceasefire could increase Russian supplies.
- When
- Monday; Trump announced the agreement on Sunday, after a diesel-supply deal announced on Friday.
- Where
- Global oil markets; the agreement concerns attacks on Russian and Ukrainian energy facilities.
- Why
- Markets expected the halt in attacks to ease supply pressure. Uncertainty over the ceasefire and Middle East tensions limited the pullback.
This story does not have two clearly opposing sides.
Questions remain over the validity and longevity of any such ceasefire, and without clearer evidence that it will actually hold, the extent of the pullback is likely to stay limited,
We maintain our base case that continued adaptation of Mideast supply will eventually reduce crude oil prices, while potential renewed escalation still poses significant net upside risk,
An announcement was made about a diesel-supply deal with Russia.
Trump said Russia and Ukraine had agreed to halt attacks on each other’s energy facilities.
Oil prices slipped amid expectations of increased Russian supplies.
- Brent crude
- $103.35 a barrel, down $1.37 by 0037 GMT
- US West Texas Intermediate
- $90.55 a barrel, down $1.30
- Energy ceasefire announcement
- Trump said Russia and Ukraine agreed to halt attacks on each other’s energy facilities
- Ukraine’s response
- Zelenskiy said he was waiting to see details of the deal
- Russia’s response
- No comment reported
Sources
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