Oil prices have decreased after US President Donald Trump waived new sanctions and tariffs on Russia, in an effort to increase diesel supplies and promote peace negotiations in Ukraine.
What happened
On October 19, Brent crude futures fell by 1.22 percent to $108.52 per barrel, while US West Texas Intermediate crude dropped by 0.13 percent to $101.28 a barrel. This decline came after Trump signed an executive order waiving sanctions and tariffs under the Lindsey O. Graham Sanctioning Russia Act.
The waiver followed a separate agreement with Moscow to supply diesel to global markets, including the US. According to analytics firm Kpler, this deal is expected to put downward pressure on prices in the near term, as refinery maintenance periods wind down and Russian exports partially recover.
However, attacks on energy infrastructure in Russia and Ukraine continue, and threats to shipping in the Middle East pose uncertainty to the supply outlook. Ukrainian President Volodymyr Zelenskyy criticized Trump's decision, calling it a historic mistake that provides big support for Russian President Vladimir Putin.
Energy Secretary Chris Wright defended the diesel agreement, stating that it is an incentive for Russia to reduce its war effort and secure relief from attacks on its refineries, allowing it to increase exports. The agreement calls for an initial release of over 300,000 metric tons of diesel to global markets, followed by larger shipments in November and December.
