Oil Prices Drop as U.S. Diesel Deal with Russia Eases Supply Fears
Oil prices fell Tuesday as a US-Russia diesel deal raised hopes of increased fuel availability in global markets, while President Donald Trump said an energy ceasefire between Moscow and Kyiv remained in effect.
International benchmark Brent crude futures for December delivery fell 1.2% to $105.38 per barrel, down from $106.65 at the previous close. US benchmark West Texas Intermediate (WTI) crude futures for November delivery dropped 1.4% to $92.44 per barrel from $93.74.
Trump urged Russian President Vladimir Putin and his Ukrainian counterpart Volodymyr Zelenskyy to reach an agreement to end the war in Ukraine.
“All I know is that Zelensky and Putin have to get together and end that ridiculous war,” Trump told reporters Monday as he departed the White House for Ohio.
Asked about Zelenskyy’s support for an “energy ceasefire” and claims that Putin had not agreed to the proposal, Trump said he believed both leaders were in favor of the arrangement.
“I think they both support it. I think they wanna make a deal, but they don’t know how. But we’re gonna get them to make a deal,” he said.
However, Trump’s assertion that both sides had agreed to a ceasefire was challenged by a reporter, who noted that Russia and Ukraine had publicly disputed the claim.
When asked about the discrepancy, Trump insisted that an agreement had been reached.
“They agreed. You know why? Because I said, ‘You agree’ — that’s why. They agreed because I said they agreed, and that thing has to get settled,” he said.
The president also offered his assessment of the two leaders’ willingness to negotiate, saying he believed that Putin was more interested in reaching an agreement than Zelenskyy.
The ceasefire announcement followed a deal Trump unveiled Friday, after talks with Putin, for Russia to supply diesel to US and global markets.
The US Treasury Department’s Office of Foreign Assets Control said Friday that it had authorised transactions involving the sale, delivery, offloading and import of Russian diesel through April 7, 2027.
Russia’s government said it had partially lifted its diesel export ban under the agreement.
Russian Deputy Prime Minister Alexander Novak told state broadcaster Vesti on Monday that Russia could raise diesel exports to 3.5 million metric tons a month by year-end.
He said the additional shipments would help balance global supply and demand. The prospect of more Russian fuel eased supply concerns, but uncertainty over the ceasefire kept markets on edge. Crude Oil Prices Mixed, Brent Rises 0.5% in 5-Day, WTI Dips
