Oil prices declined Monday as US President Donald Trump said he would not impose additional measures on Russia for now, citing the need to protect peace negotiations with Ukraine, while OPEC’s reduced demand forecast added to downward pressure.
International benchmark Brent crude futures for December delivery fell 2.48% to $107.13 per barrel at 10 a.m. local time (0700GMT), down from $109.86 at the previous close.
US benchmark West Texas Intermediate (WTI) crude futures for December delivery dropped 2.22% to $96.82 per barrel from $99.02.
Trump said Sunday that imposing additional measures on Moscow could undermine efforts to end the war in Ukraine.
“My decision on Russia is a very simple one,” Trump said in a post on his Truth Social platform, adding that he is negotiating peace between Russia and Ukraine and does not want to take an action that would “drive, foolishly, Russia away from the bargaining table.”
Trump said “great progress” was being made in the talks, including ongoing “hostage negotiations.” He added that he could sign the document at a later date or “any time” he wanted.
His remarks came amid controversy over his administration’s decision to delay the implementation of new sanctions and tariffs targeting Russia and countries buying Russian energy.
The measures, approved by Congress, include sanctions on Russian officials, banks and energy traders, as well as the possibility of steep tariffs on countries that continue to import Russian oil and gas.
Trump also cited Russia’s limited support for Iran as a reason to avoid increasing pressure on Moscow.
– Trump criticizes Zelenskyy over refinery attacks
Trump sharply criticized Ukrainian President Volodymyr Zelenskyy over Ukraine’s attacks on Russian oil and diesel refineries.
He said Zelenskyy was targeting Russian diesel facilities despite knowing the attacks were “seriously hurting the world diesel markets,” including in the US.
Trump argued that farmers, ranchers and businesses were suffering from higher fuel costs while Russia continued to supply “millions of barrels” of diesel to international markets at low prices.
“Zelenskyy doesn’t care,” he said, accusing the Ukrainian leader of showing no interest in ending the war.
Trump claimed Zelenskyy could have secured a better agreement two years ago and said Ukraine was now in ruins, having lost large amounts of territory and suffered heavy casualties.
“I WANT THIS WAR END!” he added.
– OPEC cuts demand growth forecast
A weaker demand outlook added to the pressure on prices. The Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast for global oil demand growth this year, underscoring concerns over consumption.
OPEC expects global oil demand to grow by about 200,000 barrels per day in 2026, while threats to shipping from Iran and allied groups remain a risk to supplies.
Traders also remained focused on diplomatic efforts involving Iran and the prospects of reopening the Strait of Hormuz.
Iranian Foreign Minister Abbas Araghchi said Sunday that Tehran’s proposed 7-day plan remained under discussion, though he expressed doubts about Washington’s willingness to reach an agreement.
Araghchi said Iran’s conditions had been presented to Washington as part of the plan, and that the US had submitted its views, to which Tehran was still preparing a response.
“From our point of view, the 7-day plan is on the table,” he said.
“If there is sincerity on the American side — which there is not — the path is clear. If they fulfill those conditions, the strait will reopen on the sixth day and negotiations will begin on the seventh day,” he added, referring to the Strait of Hormuz.