Oil slips from 5-month high as Trump's Russia sanctions waiver may bring more supplies
USO•Oil fell from a five-month high on Monday after Trump waived some Russia sanctions and tariffs, potentially allowing more fuel exports. Brent was down 2.08% to $107.57 a barrel and U.S. West Texas Intermediate fell 1.92% to $99.46.
1. Prices retreat
Oil prices slipped on Monday as investors took profits after Brent and U.S. West Texas Intermediate closed at their highest levels since May 19 and September 17, respectively, on Friday. Brent fell $2.29 to $107.57 a barrel, while WTI dropped $1.95 to $99.46.
2. Supply uncertainty
Trump signed an order waiving key Russia sanctions and tariffs. Secretary of State Marco Rubio said Trump would take up to 60 days to assess their economic impact, while analysts said uncertainty over the waiver's details and duration could limit how much the market prices in a sustained increase in Russian fuel exports. The waiver followed a deal to export diesel to the United States and other countries, starting at about 2.3 million barrels this month and rising to about 7.6 million barrels monthly.
3. Middle East disruptions
Attacks on commercial vessels cut Gulf crude flows to about 8.5 million barrels per day on a seven-day average last week, from more than 20 million barrels per day the previous week, Kpler said. DBS expected oil to remain in a $100 to $110 range going into the U.S. midterms, citing continuing tensions and security threats in the Middle East.
