Oil prices declined on Monday following statements by US President Donald Trump that Russia and Ukraine had agreed to halt attacks on energy sites, coupled with an arrangement for Moscow to deliver diesel to international markets.
Brent crude futures dropped $1.54, or 1.47 percent, to $103.18 a barrel, while US West Texas Intermediate fell $1.54, or 1.68 percent, to $90.31 a barrel. ICE gasoil futures slid 3 percent to $1,436 per metric ton after Trump said Russia would immediately deliver over 300,000 metric tonnes, or 2.25 million barrels, of diesel to the United States and global buyers.
Under the arrangement outlined by Trump, Russia is set to supply an additional 500,000 tonnes in November and 1 million tonnes immediately after. According to the International Energy Agency, global daily diesel consumption stands near 29 million barrels. While Trump announced the energy ceasefire on Sunday, Ukrainian President Volodymyr Zelenskiy said he was still waiting to see the details, and Moscow issued no immediate comment.
Tim Waterer, chief analyst at KCM Trade, noted that while the development alleviated immediate supply strains, uncertainty remains. “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,” Waterer said.
Crude declines were checked by persistent geopolitical tension across the Middle East, keeping Brent above the $100 threshold. Yemen's Houthis claimed a Saturday strike on Riyadh's international airport that killed 13 people and wounded more than 300, while Saudi officials confirmed additional injuries from another strike on Sunday. Trump said on Saturday that the US was weighing whether to join Saudi strikes against the Houthis.
Maritime disruptions also threatened crude flows after the UK Maritime Trade Operations reported that a drone struck a tanker near Sohar, Oman, and an unidentified projectile damaged another vessel transiting the Strait of Hormuz. Separately in the Gulf of Mexico, energy producers Shell, Chevron and BP moved to return workers and restore platform operations after Hurricane Isaias made landfall on Saturday.
