Crude oil prices ease as Russian supply prospects offset Gulf concerns

Crude oil prices have fallen in the global market on expectations that fuel supplies from Russia may increase. The market reacted after US President Donald Trump said Ukraine and Russia had agreed to stop attacking each other's energy infrastructure. Reuters and Al Jazeera reported the details on Monday (October 12).

Brent crude fell on Monday in the international market but stayed above $100 a barrel. At 12:37 am GMT, Brent futures were down $1.37, or 1.31 percent, from the previous level, at $103.35 a barrel.

At the same time, prices of US West Texas Intermediate (WTI) also declined. The benchmark crude fell $1.30, or 1.42 percent, to $90.55 a barrel.

Market analysts said that if the understanding between Russia and Ukraine to halt attacks on energy infrastructure takes effect, uncertainty in oil production and supply systems could ease. This has raised expectations of greater global supply, which has weighed on oil prices. However, the market's next move will depend on how the agreement is implemented and on the supply situation.

The conflict in the Middle East, however, remains a major obstacle to a fall in global oil prices. Concerns over oil supply continue because of the war by the United States and Israel against Iran. As a result, fuel prices in the international market remain relatively high.

Energy demand in the world's major economies, the supply policies of producing countries and the geopolitical situation continue to play an important role in the international oil market. If the Russia-Ukraine understanding takes effect, the supply picture could change. But if the Middle East conflict drags on, there are fears that volatility in the oil market will persist.