Global oil prices declined on Monday following Russia’s announcement of plans to increase diesel supplies to international markets, easing concerns about fuel availability amid continued geopolitical tensions in the Middle East.
Brent crude, the international oil benchmark, fell by $1.54, representing a 1.47% decline, to $103.18 per barrel, according to Reuters. US West Texas Intermediate (WTI) crude also dropped by $1.54 to $90.31 per barrel.
The decline followed an announcement by US President Donald Trump that Russia would immediately supply more than 300,000 metric tonnes of diesel to the United States and other international markets.
Trump said Russia would provide an additional 500,000 tonnes in November, followed by a further one million tonnes, raising expectations of improved fuel supplies and easing pressure on global oil prices.
He also announced that Ukraine and Russia had agreed to stop attacking each other’s energy facilities, fuelling hopes that disruptions to oil production and distribution could ease.
However, Ukrainian President Volodymyr Zelenskyy said he was awaiting further details of the reported agreement, while Russia had not publicly commented on the announcement.
Despite Monday’s decline, oil prices remain elevated as the conflict in the Middle East continues to threaten global energy supplies.
Recent attacks on oil tankers travelling through the Strait of Hormuz have heightened concerns about crude oil shipments from the region, helping to keep Brent crude above $100 per barrel.
Meanwhile, investment bank Goldman Sachs has raised its December forecast for Brent crude from $85 to $90 per barrel, citing continued risks to global oil supplies.
Oil prices could decline further if additional fuel reaches international markets and geopolitical tensions ease. However, renewed attacks or further disruptions to supplies, particularly in the Middle East, could reverse the decline and push prices higher.
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