Brent crude opened lower on Monday after President Trump waived key sanctions and tariffs on Russia, which could allow higher fuel exports. Supply risks remain elevated, however, as Ukraine struck Russian energy infrastructure and attacks near Hormuz continued. The EU, meanwhile, vowed to keep its Russia sanctions in place.
Brent crude opened lower this morning, trading around USD 108/bbl after reaching around USD 109/bbl on Friday.
The decline followed Trump's waiver of key sanctions and tariffs on Russia, potentially allowing higher fuel exports.
Trump waives Russia measures as the EU holds firm
Trump signed an executive order on Friday waiving key Russia-related sanctions and tariffs under the Graham Act. The measures included those targeting Russian goods and countries buying Russian oil and gas, and the waiver came shortly before they were due to take effect.
Secretary of State Rubio said Trump would use up to 60 days to assess the economic impact. He also defended a separate agreement for Russia to increase diesel supplies to the US and global markets.
The EU took the opposite line. Leaders meeting in Brussels vowed to maintain sanctions on Russia, and von der Leyen said no sanctions would be lifted unless Russia stops the war. She added that the EU is working on a 22nd sanctions package.
Supply risks keep pressure on prices
Still, supply risks remained elevated. Ukraine struck Russian energy infrastructure on Sunday, and attacks on vessels near Hormuz continued to threaten Gulf crude flows.
Energy also stood out in equities. It outperformed tech by more than 4pp on Friday alone, when a rising oil price compounded a further unwind of the AI trade.
Zelenskyy criticised the waiver, saying it would help Moscow and prolong the war. Concerns about US support eased somewhat on Sunday, however, after he said US intelligence-sharing had resumed and that a possible new peace meeting could take place this week.
Source: ActionForex
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