Brent crude falls to $108 as Trump waives Russia sanctions and tariffs

Brent crude falls after US President Donald Trump waived sanctions and tariffs on Russia. Brent dropped $1.94, or 1.77%, to $107.92 a barrel by 07:57 IST on Monday, Reuters reported. Meanwhile, US WTI crude slipped 83 cents to $100.58.

Why Brent crude falls today

On Friday, Brent settled at its highest level since 19 May. It also briefly topped $110 for the first time since May. Our analysis of Brent at $110 explains the shipping risks behind that rally.

However, Trump then signed an order that waives most Graham Act sanctions and duties. As a result, traders now expect more Russian fuel to reach the market. In addition, Trump struck a deal with Vladimir Putin on Russian diesel exports. According to Trump, they start at about 2.3 million barrels this month and rise to about 7.6 million barrels a month.

Still, Secretary of State Marco Rubio said the president will take up to 60 days to assess the economic impact.

What the waiver means for India

The law would have raised duties by 100% on goods from the five largest buyers of Russian crude and gas. Those duties targeted new purchases from 18 October. So the waiver removes, for now, a direct threat to Indian exporters.

Even so, Indian refiners had already cut back. Russian crude imports fell to about 1.8 million barrels a day from about 2.7 million at the July peak, industry executives told Hindustan Times.

What to watch

The Middle East still supports prices. For instance, Kpler said Gulf crude flows fell to about 8.5 million barrels a day last week, from more than 20 million the week before. Next, watch whether Washington keeps the waiver and whether Russia signs the diesel contracts.