Oil prices fell on expectations that Ukraine and Russia would agree to stop attacks on each other's energy facilities
Trump announced that Ukraine and Russia agreed to stop attacks on each other's energy facilities, following a diesel supply deal with Moscow. Oil prices fell on Monday on expectations of more supply from Russia.
Brent crude oil futures were down 11 cents (0.11 percent) at $104.61 a barrel at 06:27 GMT, while WTI crude oil was down 49 cents (0.53 percent) at $91.36 a barrel. Both types of indicators were down more than 1 percent earlier in the session.
ICE gasoil futures fell 3 percent to $1,436 per metric ton after Trump announced on Friday that Russia would immediately supply more than 300,000 metric tons (2.25 million barrels) of diesel to U.S. and global markets.
Trump added that Russia would supply 500,000 tons in November and another 1 million tons "right after." According to the International Energy Agency (IEA), global daily diesel consumption is projected to be close to 29 million barrels.
Trump had also unexpectedly announced on Sunday that Ukraine and Russia had agreed to an energy truce. However, Zelenskiy claims that Russia is not complying with the energy ceasefire; Russia does not comment on these issues.
Questions remain about the validity and durability of such a ceasefire, and without clearer evidence that the ceasefire will actually be preserved, the pullback in prices is likely to remain limited.
IEA Executive Director Fatih Birol said on Sunday that all members should evaluate whether additional diesel supply is necessary and that countries that have not yet delivered the full amounts they have committed should accelerate their remaining shipments by prioritizing diesel supply.
However, the conflict environment in the Middle East continued to support Brent crude oil prices above $100 per barrel.
The Houthis attacked Saudi airports over the weekend. There are many dead and injured. The US is considering joining the Saudi offensive against the Houthis.
Additionally, there have been new reports of attacks on tankers passing through the Strait of Hormuz since the beginning of this month; This situation risks disrupting the recovery in Middle East crude oil exports observed in September.
UK Maritime Trade Operations (UKMTO) said in a statement over the weekend that two tanker attacks were reported over the weekend.
Major energy companies are restarting oil production in the Gulf of Mexico. In the Gulf of Mexico, energy giants Shell, Chevron and BP are trying to redeploy staff and restart production on their platforms after Hurricane Isaias made landfall early Saturday.
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