Oil prices fall as Trump announces Russia-Ukraine 'energy ceasefire'
What's the story
Oil prices witnessed a decline on Monday, owing to US President Donald Trump's announcement of an "energy ceasefire" between Russia and Ukraine. The international benchmark Brent crude for December delivery fell by 1.65% to $102.99 per barrel, while US West Texas Intermediate futures for November dropped by 1.92% to $90.09 per barrel. The decrease is attributed to hopes of improved oil supplies following Trump's declaration that both countries have agreed not to target each other's energy facilities anymore.
Ceasefire endorsement
Russian energy supplies to global markets expected after US deal
Ukrainian President Volodymyr Zelenskyy took to social media to endorse the ceasefire. He said, "Ukraine supports the ceasefire, and it is important that Russia support it as well."
The endorsement comes amid hopes of an increase in Russian energy supplies to global markets after a deal with the US.
Trump had announced last Friday that Russia will provide over four million tons of diesel under a deal he struck with Putin during their phone call.
Regional dialogue
Iranian foreign minister reaches out to Saudi counterpart
Meanwhile, Iranian Foreign Minister Abbas Araghchi has reached out to his Saudi counterpart Faisal bin Farhan bin Abdullah.
The talks were held over the recent escalation in the region and ways to address it.
Al Jazeera reported that Araghchi is willing to facilitate dialogue between Saudi Arabia and Yemen's Houthis, amid rising tensions in the Middle East due to attacks by Yemeni Houthis such as a recent one on Riyadh's airport.
Market volatility
Hurricane Isaias could impact oil prices
The US-Iran conflict is likely to keep oil prices volatile in the near term. The impact of Hurricane Isaias on US energy producers could also affect supplies.
UOB noted that "the pressure on oil prices could remain on the upside as Hurricane Isaias strengthened to Category 3 with 193km/h winds as it approached the US Gulf Coast, forcing energy producers to curtail offshore output."