Oil prices fall after Trump eases Russia sanctions

Crude oil prices have dropped in international markets after the United States backed away from plans to impose fresh sanctions on Russia. Oil showed a downward trend at the start of trading in Asian markets on Monday (October 19).

Al Jazeera reported that Brent crude, the global benchmark, fell by more than 1.5 percent on Monday to $107.92 a barrel.

On Friday, US President Donald Trump signed an executive order cancelling certain planned measures against Russia before they could take effect. The proposed measures included tariffs on Russian goods and punitive action against parties buying oil and gas from the country.

Meanwhile, oil prices had climbed last Friday amid ongoing tensions in the Middle East and concerns over the security of key shipping lanes for energy supplies. That day, Brent crude reached $110 a barrel, its highest level since May.

With the waiver on new sanctions and tariffs, markets expect Russia's energy exports could rise. The prospect of greater supply has put downward pressure on prices. However, uncertainty remains over where global oil prices will head, given the instability in the Middle East and fears of supply disruptions.