Key facts
- Brent crude traded at $107.84 per barrel, WTI at $100.29.
- Deal aims to supply 2.3 million barrels of diesel this month.
- Seven-day moving average in the Strait of Hormuz has fallen to 8.5 million barrels daily.
Crude oil prices declined at the start of the week, driven by expectations of increased diesel supply following a deal between the US and Russia. Brent crude was trading at $107.84 per barrel, and West Texas Intermediate at $100.29 per barrel. This represents an increase from the previous week's prices. The dip followed President Trump's executive order on Friday, which lifted sanctions on Russian energy. The agreement with Russian President Vladimir Putin includes the supply of approximately 2.3 million barrels of diesel this month to the US and other nations, with an additional 7.6 million barrels planned for November and subsequent months. Analysts suggest these volumes may not significantly alter the global diesel market balance, but traders reacted to the news. Uncertainty about the deal's effectiveness and the duration of sanction exemptions, coupled with ongoing tanker attacks in the Strait of Hormuz, contributed to the modest price decline. Traffic in the waterway has reportedly fallen to an average of 8.5 million barrels daily.