Last Updated on 19/10/2026
- WTI prices declined after the US waived sanctions on Russian oil, potentially increasing global supply.
- Intensifying clashes and tanker attacks near the Strait of Hormuz continue to raise concerns over potential supply disruptions.
- Ukrainian drone attacks on Russian oil infrastructure in St. Petersburg add to uncertainty in the global oil market.
West Texas Intermediate (WTI) crude oil fell after seven consecutive sessions of gains, trading at around $97.40 per barrel during Asian trading on Monday. Prices retreated following US President Donald Trump’s decision to suspend key sanctions and tariffs on Russian oil, a move expected to increase Russian fuel exports and ease global supply constraints. The executive order, signed on Friday, temporarily halted restrictions under the Graham Act, which Trump had approved the previous month amid pressure from lawmakers seeking to penalize Moscow for its war in Ukraine. US Secretary of State Marco Rubio said the administration would take up to 60 days to assess the waiver’s economic impact.
Turkey is expected to absorb some of the additional Russian diesel entering global markets under an agreement with Washington. Turkish Energy Minister Alparslan Bayraktar described the arrangement as important for the country’s energy security. Although Turkey remains heavily dependent on energy supplies from Russia, Iran, and Azerbaijan, Ankara continues to pursue diversification through partnerships with the US and other countries.
Despite the initial pullback, WTI prices could regain upward momentum as escalating conflicts in the Middle East and Eastern Europe continue to threaten global oil supplies. In the Middle East, fighting involving Saudi Arabia and Iran-backed Houthi rebels remains intense. A recent Saudi helicopter crash near the Yemeni border and Houthi attacks targeting Yanbu, a major Saudi oil export hub, have heightened concerns over potential disruptions. Meanwhile, three tankers sustained damage in the Strait of Hormuz over the weekend, while Iran’s Islamic Revolutionary Guard Corps (IRGC) Navy reiterated that unauthorized vessels would not be permitted to pass through the strategic waterway.
In Eastern Europe, Ukrainian forces carried out one of their largest aerial operations of the war, launching more than 1,000 drones at targets across Russia. The attacks triggered major fires at an oil export terminal and a storage facility in St. Petersburg on Sunday, adding to uncertainty surrounding Russian oil exports and the broader global energy supply outlook.
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