ISLAMABAD: Oil prices eased slightly in the global market on Monday, October 19, retreating from a five-month high after US President Donald Trump decided to waive key sanctions on Russia.
Brent crude, the global oil benchmark, fell to around 108 dollars per barrel in early Asian trade after jumping almost four percent on Friday. In early trading, Brent futures dropped 1.3 percent to 108.43 dollars per barrel, while US West Texas Intermediate crude fell 0.52 percent to 100.88 dollars.
In another session, Brent was down 1.64 percent to 108.06 dollars. The pullback came after Brent briefly touched 110 dollars per barrel on Friday for the first time since May 2026, its highest settlement since May 19.
The development came after President Trump signed an executive order on Friday evening, waiving key sanctions and tariffs under legislation known as the Graham Act. He had signed that law in September at the urging of lawmakers who wanted to increase pressure on Moscow over its war in Ukraine.
The sanctions were due to take effect within days and included tariffs on Russian products and penalties on countries purchasing Russian oil and gas. According to reports, the waiver followed a diesel export deal between the United States and Russia that would allow Russian diesel to enter the American market. Secretary of State Marco Rubio said Trump would take up to 60 days to evaluate the economic consequences of the waiver.
President Trump said the decision was made in the national interest of the United States and was an attempt to keep Russia at the negotiating table for peace talks with Ukraine. Despite today’s slight dip, oil remains very expensive, with prices up more than 75 percent this year. The decline was limited by deep concerns about the Middle East. A Saudi helicopter crashed near the border with Yemen, Houthi rebels targeted Yanbu, which is a crucial export hub, and two tankers were reported to have been hit in the Arabian Gulf.
Analytics firm Kpler said Gulf crude flows fell to only about 8.5 million barrels per day last week, down from more than 20 million barrels per day the previous week, after at least 10 maritime incidents. At the same time, refined products such as diesel have rallied even harder than crude, showing physical scarcity in the market.
The waiver has drawn criticism. Lawmakers from both parties in US Congress introduced a bill to block the fuel purchases, while Ukraine warned the move would reduce economic pressure on Russia. To reassure traders, the United States said its forces helped escort more than 100 million barrels of oil through the Strait of Hormuz last week. The market is now caught between two opposing forces, with more Russian supply pushing prices down and Middle East war risks pushing them up.
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