Oil prices fall on Monday

Oil prices fell on Monday as investors took profits after US President Donald Trump waived key sanctions and tariffs on Russia, potentially paving the way for increased Russian fuel exports.

Brent crude futures dropped $2.29, or 2.08 per cent, to $107.57 a barrel by 0619 GMT, while US West Texas Intermediate crude fell $1.95, or 1.92 per cent, to $99.46. Both benchmarks had closed at multi-month highs on Friday.

The waiver has created uncertainty over future supply, with analysts noting that its impact remains unclear as Trump assesses the measures over the next 60 days. However, continued attacks on commercial vessels in the Strait of Hormuz have disrupted oil flows, with Gulf crude exports falling to around 8.5 million barrels per day last week, down from more than 20 million bpd the previous week, according to Kpler.

Brent briefly reached $110 a barrel on Friday amid escalating Middle East tensions and concerns over shipping security. DBS expects oil prices to remain between $100 and $110 a barrel ahead of the US midterm elections, as short-term policy measures are unlikely to resolve underlying supply disruptions.

Attribution: Reuters