Trump's Russia diesel deal pulls oil to $103 per barrel

The Trump administration's diesel agreement with Russia has pushed down global oil prices. Brent crude futures fell 1.47 percent on Monday to $103.18 per barrel, while U.S. crude (WTI) declined 1.68 percent to $90.31 per barrel. ICE gasoil futures tracking diesel prices retreated 3 percent to $1,436 per barrel.

U.S. President Donald Trump announced last Friday that Russia would immediately supply 300,000 metric tons—approximately 2.25 million barrels—of diesel to the U.S. and global markets. Trump also announced that Russia and Ukraine had agreed to halt mutual attacks on energy facilities.

KCM Trade's chief analyst Tim Waterer noted that the developments have reduced short-term supply pressure, while cautioning that uncertainties over how long the ceasefire will last could limit price declines.

Meanwhile, four Republican and two Democratic senators from the U.S. Congress called on the Trump administration in a separate statement to abandon plans to purchase fuel from Russia. The senators reminded Congress in their statement that it had explicitly prohibited oil imports as long as Russia continues its aggression toward Ukraine.