Oil prices retreated from a five-month high on Monday morning after US President Donald Trump waived key Russia-related sanctions and tariffs, potentially allowing more Russian fuel supplies to reach global markets.
Oil prices fell on Monday morning after US President Donald Trump waived key sanctions and tariffs on Russia, a move that could increase Russian fuel exports and add to global supply.
Brent crude futures declined by 2.08% to $107.57 a barrel in Asian trading, while US West Texas Intermediate crude fell by 1.92% to $99.46. Both benchmarks had reached their highest levels in months at the end of the previous week.
The US administration said it would assess the economic impact of the measures over a period of up to 60 days. The potential increase in Russian supplies has raised expectations of some relief for energy markets, although the longer-term effect remains uncertain.
Disruptions to oil shipments in the Strait of Hormuz continue to weigh on supply expectations. Analysts have cautioned that easing sanctions alone may not resolve the underlying risks to global oil flows.
The market reaction highlights the competing forces shaping energy prices: the prospect of increased Russian exports on one side and continuing geopolitical and shipping risks on the other.
