The drop in oil prices following the announcement of a possible ceasefire agreement between Russia and Ukraine
Oil prices fell in Monday's trading; Because after the announcement by Donald Trump, the President of the United States, of the agreement between Russia and Ukraine to stop attacks on each other's energy facilities, it is expected that the supply of Russian oil and petroleum to the market will increase.
The price of a barrel of Brent crude oil fell by $1 and 54 cents, equivalent to 47.1%, to $103 and 18 cents. US West Texas Intermediate crude also fell by the same amount, equivalent to 68.1%, to 90 dollars and 31 cents.
The price of diesel futures on the international energy exchange also fell by three percent and reached $1,436 per barrel.
Donald Trump announced on Friday that Russia would immediately supply more than 300,000 tons of diesel, equivalent to 2.5 million barrels, to the US and global markets.
According to him, Russia will supply another 500,000 tons and then 1 million tons of diesel in November. Trump also unexpectedly announced on Sunday that Russia and Ukraine had agreed to end attacks on each other's energy facilities. However, Ukrainian President Volodymyr Zelensky said he was still waiting to receive the details of that agreement, and Russia did not comment on it.
Tim Waters, senior analyst at Keysiam Trade, said the announcements eased some of the immediate pressure on energy supplies, but questions remained about the validity and durability of a possible ceasefire.
According to him, until there is clearer evidence for the implementation of the agreement, the drop in oil prices will likely remain limited.
In the meantime, Petah Birol, Director General of the International Energy Agency, asked the member states to examine whether or not there is a need for additional release of diesel fuel from reserves. He also asked the countries that have not yet provided all the volumes they committed to speed up the process of releasing the remaining reserves with diesel priority.