Oil Prices Fall as Markets Assess Possibility of Exemption Related to Russian Energy

Oil prices fell on Tuesday as markets digested an executive order issued by U.S. President Donald Trump that suspends certain sanctions and tariffs linked to Russian energy exports.

Brent crude futures fell 49 cents, or 0.45 percent, to $109.06 per barrel by 00:10 GMT. U.S. West Texas Intermediate crude futures for November delivery, which expire on Tuesday, dropped 0.33 percent to $103.32. The most actively traded December contract fell 46 cents, or 0.47 percent, to $98.08.

Brent crude had risen to $110.70 per barrel in the previous session, marking its highest level since May 20.

Trump issued the executive order on Friday evening, rescinding key U.S. sanctions and tariffs related to Russia, including duties on Russian goods and sanctions on purchases of Russian oil and gas.

However, Trump said on Saturday that he had not yet made a final decision on the matter, while Secretary of State Marco Rubio stated that officials wanted more time to assess the situation.

Last week, the International Energy Agency reported that Russia’s crude oil production rose by 65,000 barrels per day in September to reach 8.43 million barrels per day, but remained about 870,000 barrels per day below its level a year earlier.

Tim Waterer, an analyst at KCM Trade, said, “While the prospect of additional Russian diesel supplies offers some theoretical relief, traders appear to be focusing much more on the ongoing risk of further damage to energy infrastructure across the Gulf region.”

Resurgent attacks have heightened concerns about regional stability and underscored persistent risks to energy supplies from the area, keeping oil prices above $100 per barrel.

In the United States, an initial Reuters poll on Monday showed that U.S. crude oil inventories are expected to have declined last week, alongside drops in product stockpiles.