Oil prices fell sharply on Monday after U.S. President Donald Trump over the weekend announced an energy ceasefire between Russia and Ukraine.

Crude also faced some profit-taking after rising nearly 3% last week amid heightened tensions in the Middle East, as clashes between Saudi Arabia and Yemen’s Iran-backed Houthis continued, as did tanker attacks in the Strait of Hormuz.

Brent oil futures for December slid 1.8% to $102.84 a barrel by 23:14 ET (03:14 GMT).

But crude fell on the prospect of fewer disruptions in Russian fuel supplies after Trump claimed that Russia and Ukraine had agreed to an energy ceasefire, effective immediately.

Kyiv and Moscow did not confirm the agreement.

Trump over the weekend threatened Ukrainian President Volodymyr Zelenskiy to stop attacking Russian refineries, while also calling for his removal as Ukraine’s leader.

Trump had previously announced an energy ceasefire in mid-September, although neither Russia, nor Ukraine confirmed such an agreement.

Trump, whose war with Iran has been largely attributed as causing higher global oil prices, also blamed Zelenskiy and Ukraine for driving up global oil prices.

Kyiv was seen increasingly attacking Russia’s oil refining and shipping infrastructure in recent weeks, causing major disruptions in global fuel supplies.

Trump on Friday announced a diesel supply deal with Russia to help bring down prices at the pump, which rose sharply in recent weeks.

Still, Monday’s losses in oil were limited by continued tensions in the Middle East, especially after Iran said a recent U.S. proposal to reopen the Strait of Hormuz was “insufficient.”

Iran ramped up its attacks on shipping through Hormuz since late-September, greatly disrupting supplies and driving up crude prices.

Saudi-Houthi hostilities also continued, after the latter launched more attacks on Riyadh over the weekend, including on a major airport.

Supply disruptions in the U.S. Gulf coast remained in focus after Hurricane Isaias made landfall in the region last week, causing a wave of devastation along the coast. Over 60% of oil production in the region was seen going offline last week in preparation for the storm.

Source: Investing.com

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