Oil slips as Trump's sanction waiver may lead to more Russian fuel supplies

SINGAPORE: Oil ‌prices slipped on Monday after US President Donald Trump waived sanctions and tariffs on Russia that may lead to more Russian fuel exports.

Brent crude futures fell $1.43, or 1.30%, to $108.43 ​a barrel by 2340 GMT after settling at its highest since May ​19 on Friday.

US West Texas Intermediate crude was at $100.88 a ⁠barrel, down 53 cents, or 0.52%.

Trump signed an executive order on Friday waiving ​key sanctions and tariffs under the law known as the Graham Act, which ​he signed last month at the urging of lawmakers who want to pressure Moscow over its war in Ukraine.

However, Secretary of State Marco Rubio said the president will use up ​to 60 days to assess the economic impact of the waiver.

The move ​comes after Trump struck a deal with Russian President Vladimir Putin to export diesel to ‌the ⁠United States. Ukrainian President Volodymyr Zelenskiy said these US actions will hurt Ukraine.

Brent crude oil briefly touched $110 a barrel on Friday for the first time since May as tensions and security threats in the Middle East raised concerns over the ​safety of shipping ​and tighter global ⁠energy supplies.

Intensified attacks on commercial vessels cut Gulf crude flows sharply to about 8.5 million barrels per day on ​a seven-day average last week from more than 20 million ​bpd the ⁠week before, analytics firm Kpler said in a Friday note. At least 10 confirmed incidents involving commercial vessels were reported last week, it added.

IEA suggests members assess need for more diesel releases

Potentially raising the ⁠stakes in ​the Middle East war, Egypt said it is ready ​to provide Saudi Arabia with the support it needs to defend its security and stability against ​Yemen’s Houthis.