Oil Prices Dip on Russian Sanctions Relief, but Supply Risks Persist

Oil prices fell slightly Monday after President Donald Trump eased restrictions on Russian oil, raising hopes for increased global supply, though escalating Middle East attacks kept energy flow risks prominent. Brent futures dropped 1.21% to $108.52 per barrel, while West Texas Intermediate fell 0.13% to $101.30. Trump signed an executive order suspending key sanctions and tariffs on Russia, with Secretary of State Marco Rubio saying the administration would take up to 60 days to assess economic impacts. This follows an earlier decision to suspend sanctions on Russian diesel exports until April 2027. However, attacks around the Gulf cut crude transit to about 8.5 million barrels per day, down from over 20 million, with 10 incidents recorded last week. Analysts at DBS expect oil to remain between $100 and $110 per barrel until the November 3 midterm elections, as geopolitical risks outweigh immediate supply benefits. Ukrainian drone strikes on a St. Petersburg terminal processing 120,000 barrels daily of refined products further complicate supply outlooks.