Oil falls on hopes Russia-Ukraine energy ceasefire will boost supplies
Oil prices declined following reports of a potential energy ceasefire between Russia and Ukraine and a U.S.-brokered deal for increased Russian diesel supplies. While the news eased supply concerns, analysts remain cautious about the long-term stability of the ceasefire and ongoing geopolitical tensions in West Asia.
Why it matters
Global energy markets remain highly sensitive to geopolitical developments, particularly those involving major producers like Russia and conflict zones in the Middle East.
Oil prices slipped on Monday (October 12, 2026) on expectations of more Russian supplies after U.S. President Donald Trump said Ukraine and Russia had agreed to halt attacks on each other's energy facilities following a U.S. diesel-supply deal with Moscow.
Brent crude futures fell 11 cents, or 0.11%, to $104.61 a barrel by 0627 GMT while U.S. West Texas Intermediate crude was at $91.36 a barrel, down 49 cents, or 0.53%. Both benchmarks were down more than 1% earlier in the session.
ICE gasoil futures fell 3% to $1,436 per metric ton after President Trump said on Friday (October 9, 2026) that Russia will immediately supply more than 300,000 metric tons (2.25 million barrels) of diesel to U.S. and global markets.
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