Brent Crude Dips Below $104 As Russia-Ukraine Energy Ceasefire Hopes Rise

Global crude oil prices declined on Monday as expectations of increased Russian energy supplies and a possible ceasefire covering energy infrastructure between Russia and Ukraine eased concerns over supply disruptions.

Brent crude slipped below $104 a barrel and was last trading 1.27% lower at $103.40.

However, continuing geopolitical tensions in the Middle East and fresh attacks on vessels near the Strait of Hormuz prevented a sharper decline, keeping prices above $100 a barrel.

Russia-Ukraine energy ceasefire hopes rise

US President Donald Trump said on Sunday that Russia and Ukraine had agreed to suspend attacks on each other's energy infrastructure.

His statement followed an announcement on Friday concerning a proposed Russian diesel supply arrangement.

The developments raised expectations that additional Russian energy supplies could reach international markets, potentially easing pressure on crude prices.

However, Ukrainian President Volodymyr Zelenskyy said he was awaiting further details of the reported agreement.

Russia had not publicly confirmed the arrangement, leaving uncertainty over its implementation.

Meanwhile, the US Department of Energy approved an emergency exchange of up to 4 million barrels of crude from strategic reserves to address supply disruptions attributed to Hurricane Isaias.

Hormuz tensions support prices

Despite expectations of improved Russian supplies, security concerns across the Middle East continued to influence oil markets.

The Iran-linked Houthi group claimed responsibility for an attack on Riyadh's international airport on Saturday that reportedly killed 13 people and injured more than 300.

Saudi authorities also reported additional injuries following another attack on Sunday.

Trump said Washington was considering joining Saudi Arabia in military strikes against the Houthis, raising fears of further regional escalation.

Shipping risks have intensified around the Strait of Hormuz, a crucial passage for international oil shipments.

According to United Kingdom Maritime Trade Operations, a tanker was struck by a drone near Oman's Sohar anchorage, while another vessel sustained damage from an unidentified projectile in the strait.

These incidents could disrupt recovering Middle Eastern crude exports and limit further price declines.

Oil markets remain sensitive to developments involving Russia, Ukraine and the security of Gulf shipping routes.