On Monday, oil prices fell as Brent crude futures for December delivery decreased by 1.65% to $102.99 a barrel, while U.S. West Texas Intermediate futures for November dropped 1.92% to $90.09 per barrel. The decline was driven by President Donald Trump's declaration of an 'energy ceasefire' between Russia and Ukraine, which both parties have agreed to support.
This ceasefire could lead to increased Russian energy supplies in the market, particularly as Trump mentioned a deal for Russia to supply over 4 million tons of diesel globally. Additionally, Iran's outreach to Saudi Arabia following recent Houthi attacks indicates a potential easing of regional tensions, which could further stabilize oil supplies.
However, the market remains cautious due to ongoing volatility from the U.S.-Iran conflict and the impact of Hurricane Isaias, which has intensified and poses risks to U.S. energy production in the Gulf Coast.
Analysts from UOB noted that while prices may face upward pressure due to these factors, the overall outlook remains uncertain as geopolitical risks and natural disasters continue to affect supply dynamics