Oil tumbles as Trump's Russia sanctions waiver may lead to more fuel supplies
USO•Oil prices fell on Monday after Trump waived key Russia sanctions and tariffs, potentially allowing more Russian fuel exports. Brent was down 1.80% at $107.88 a barrel and U.S. West Texas Intermediate fell 1.14% to $100.25.
1. Prices slip from highs
Brent crude futures fell $1.98 to $107.88 a barrel by 0427 GMT, while U.S. West Texas Intermediate crude dropped $1.16 to $100.25. Both benchmarks had settled at their highest levels in months on Friday.
2. Supply outlook remains uncertain
Trump signed an order waiving key sanctions and tariffs under the Graham Act. Secretary of State Marco Rubio said Trump would take up to 60 days to assess their economic impact. Analysts said the waiver could increase Russian fuel exports, but uncertainty over its details and duration may limit its effect on market expectations. Attacks on commercial vessels also cut Gulf crude flows to about 8.5 million barrels per day on a seven-day average last week, down from more than 20 million the week before.
