Oil slips as Trump's sanction waiver may lead to more Russian fuel supplies

Oil prices experienced a decline on Monday following US President Donald Trump choosing to waive sanctions and tariffs on Russia. This decision could potentially result in increased Russian fuel exports. Brent crude futures dropped by $1.43, or 1.30%, to $108.43 a barrel, while US West Texas Intermediate crude decreased by 53 cents, or 0.52%, to $100.88 a barrel.

The president signed an executive order on Friday granting such waivers under the Graham Act, a law signed last month at the behest of lawmakers seeking to pressure Russia over its involvement in Ukraine. However, Secretary of State Marco Rubio stated that Trump would use up to 60 days to evaluate the economic implications of the waiver.

The move follows a deal between Trump and Russian President Vladimir Putin to export diesel fuel to the United States. Ukrainian President Volodymyr Zelenskiy expressed concern that these US actions would negatively impact Ukraine. Brent crude oil briefly reached $110 a barrel on Friday, its highest level since May, due to heightened tensions and security threats in the Middle East, which raised concerns about the safety of shipping and reduced global energy supplies.

The number of confirmed attacks on commercial vessels in the Gulf had surged to about 8.5 million barrels per day on a seven-day average last week, compared to over 20 million bpd the previous week, according to analytics firm Kpler.