Oil Prices Today: Crude oil prices fell on Monday, with Brent crude futures slipping below the $104-per-barrel mark, as expectations of increased Russian oil supplies and a proposed energy ceasefire between Russia and Ukraine eased supply concerns.
However, escalating tensions in the Middle East and fresh attacks on oil tankers transiting the Strait of Hormuz continued to support prices above $100 a barrel.
Last checked, Brent crude was down 1.4% at $103.35 a barrel.
US President Donald Trump said on Sunday that Russia and Ukraine had agreed to halt attacks on each other's energy infrastructure, following an announcement on Friday about a diesel-supply deal with Moscow. The proposed energy ceasefire raised expectations of improved energy flows and potentially higher Russian supplies.
However, Ukrainian President Volodymyr Zelenskyy said he was still awaiting details of the agreement, while Russia had not publicly commented on the announcement.
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Middle East Tensions Keep Oil Prices Elevated
Despite the easing of supply concerns linked to Russia and Ukraine, geopolitical risks in the Middle East continued to underpin crude oil prices.
The Iran-linked Houthi group claimed responsibility for a Saturday attack on Riyadh's international airport that killed 13 people and injured more than 300, while Saudi authorities reported further injuries following another attack on Sunday. Trump said the US was considering joining Saudi Arabia in strikes against the Houthis, raising concerns about a further escalation of the regional conflict.
The wider conflict involving Iran, the US and Israel has also heightened concerns over the security of energy shipments through the Strait of Hormuz, a critical route for global oil supplies.
Fresh attacks on tankers have added to those concerns. A tanker was struck by a drone near the Sohar anchorage in Oman, while another was damaged by an unidentified projectile while transiting the Strait of Hormuz, according to the United Kingdom Maritime Trade Operations.
The attacks threaten to disrupt the recovery in Middle Eastern crude exports seen in September and could limit the extent of any decline in oil prices.
Separately, the US Department of Energy approved an emergency exchange involving up to 4 million barrels of crude oil from strategic reserves to help mitigate supply disruptions caused by Hurricane Isaias.
With expectations of additional Russian supplies weighing on prices and persistent geopolitical risks providing support, crude oil markets remain sensitive to developments in the Russia-Ukraine conflict, the Middle East and the security of shipping through the Strait of Hormuz.
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