WTI fell as US waive sanctions on Russia to boost global oil supply.
Escalating clashes and tanker attacks near the Strait of Hormuz keep supply risks high.
Ukrainian drone strikes on Russian oil infrastructure in St. Petersburg add further market uncertainty.
West Texas Intermediate (WTI) oil price declines after seven days of gains, trading around 97.40 per barrel during Asian hours on Monday. Crude oil prices slipped following US President Donald Trump’s decision to waive key sanctions and tariffs on Russia, a move expected to boost Russian fuel exports. The executive order signed on Friday paused restrictions under the Graham Act, a bill Trump had signed just last month under pressure from lawmakers seeking to punish Moscow over its war in Ukraine. Secretary of State Marco Rubio noted that the president will take up to 60 days to evaluate the economic impact of this waiver.
Turkey is set to absorb some of the diesel Russia releases into global markets under its agreement with the US. Turkish Energy Minister Alparslan Bayraktar highlighted the deal as crucial for national energy security, noting that while Ankara currently relies heavily on Russia, Iran, and Azerbaijan, it continues to seek diversification through new partnerships with the US and other nations.
Despite the initial price decline, crude markets could soon recover as escalating conflicts in the Middle East and Eastern Europe sustain severe supply risks. In the Middle East, hostilities between Saudi Arabia and Iran-backed Houthi rebels remain intense, highlighted by a recent Saudi helicopter crash near the Yemen border and Houthi strikes targeting Yanbu, a major oil export hub. Furthermore, three tankers were damaged in the Strait of Hormuz over the weekend while Iran’s IRGC Navy reaffirmed that the vital transit route remains closed to unauthorized traffic.
Meanwhile, in Eastern Europe, Ukrainian forces launched one of the war's largest aerial assaults, deploying over 1,000 drones against targets in Russia. The attacks sparked major fires at an oil export terminal and a storage depot in St. Petersburg on Sunday, further compounding global supply uncertainty.
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