Oil: Brent eases after US Russia waiver – Danske Bank

Danske Research Team reports that Brent crude opened lower near USD 108/bbl after touching USD 109/bbl on Friday. The decline followed President Trump’s waiver of key Russia-related sanctions and tariffs, which could boost fuel exports. However, they stress that supply risks remain elevated due to Ukrainian strikes and threats to Gulf crude flows.

Brent slips but supply risks stay high

"In commodities, Brent crude opened lower this morning, trading around USD 108/bbl after reaching around USD 109/bbl on Friday.The decline followed President Trump's waiver of key sanctions and tariffs on Russia, potentially allowing higher fuel exports."

"Still, supply risks remained elevated, as Ukraine struck Russian energy infrastructure on Sunday and attacks on vessels near Hormuz continued to threaten Gulf crude flows."

"In geopolitics, the split between the EU and the US on Russia policy widened over the weekend. EU leaders meeting in Brussels vowed to maintain sanctions on Russia and sustain support for Ukraine, with von der Leyen saying no sanctions would be lifted unless Russia stops the war and that the EU is working on a 22nd sanctions package."

"Zelenskyy criticised the waiver as "wrong", saying it would help Moscow and prolong the war. However, concerns about US support eased somewhat on Sunday after Zelenskyy said US intelligence-sharing had resumed and that he had discussed next diplomatic steps with Trump envoys, including a possible new peace meeting this week."

"Trump then signed an executive order on Friday waiving key Russia-related sanctions and tariffs under the Graham Act, including measures targeting Russian goods and countries buying Russian oil and gas, shortly before they were due to take effect. Secretary of State Rubio said Trump would use up to 60 days to assess the economic impact, while also defending a separate agreement for Russia to increase diesel supplies to the US and global markets."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)