Oil prices fall following Russia sanctions decision

On Monday, October 19, Brent crude fell 1.77% to $107.92 per barrel, while US West Texas Intermediate (WTI) crude declined 0.82% to $100.58. Expectations that Russia could export more fuel to global markets, along with profit-taking following recent gains, weighed on prices.

Under an agreement reached between the Trump administration and Russia, diesel shipments are expected to begin at approximately 2.3 million barrels this month and gradually increase to 7.6 million barrels per month. However, supply disruptions in the Middle East continue to create uncertainty in oil markets. According to Kpler data, daily oil shipments from the Gulf region fell to an average of 8.5 million barrels last week, compared with more than 20 million barrels per day the previous week. Analysts caution that it is too early to expect a sustained recovery in oil supplies until the scope and duration of the sanctions exemptions granted to Russia become clear.