Oil prices drop as Trump lifts Russia sanctions in diesel export deal

Oil prices fell sharply on Monday, October 19, after US President Donald Trump lifted sanctions and tariffs against Russia, potentially boosting Russian fuel exports, according to Reuters. Brent futures dropped $1.94 (1.77%) to $107.92 per barrel, while West Texas Intermediate fell 83 cents to $100.58. Trump signed a decree revoking key sanctions under the "Graham Law" after reaching an agreement with Russian President Vladimir Putin on diesel exports to the US and other countries, starting at 2.3 million barrels this month and rising to 7.6 million monthly. Secretary of State Marco Rubio said Trump will use up to 60 days to assess the economic impact. Ukrainian President Volodymyr Zelensky said these actions would harm Ukraine. Energy Secretary Chris Wright called the deal a "carrot" to encourage Moscow to reduce the scale of the war, noting sanctions were temporarily suspended, not permanently lifted. Analysts say market uncertainty persists until details are clarified.