Oil falls after Trump’s statement on halting attacks on energy facilities — CNBC

Oil futures declined after U.S. President Donald Trump said that Ukraine and the Russian Federation — an aggressor state — had reached an agreement not to strike each other’s energy facilities. As CNBC reports, December Brent futures fell by 1.65% to $102.99 per barrel, while November contracts for U.S. WTI lost 1.92% and traded at $90.09 per barrel.

Statement on an energy truce

Trump said in a social media post that an energy truce in the war between Russia and Ukraine had taken effect immediately and that both sides had agreed to it. Ukrainian President Volodymyr Zelenskyy, for his part, said that Ukraine supports the ceasefire and that it is important for Russia to support it.

Contacts between Iran and Saudi Arabia

The decline in oil prices was also driven by reports of contacts between Iran and Saudi Arabia following Houthi attacks on the kingdom. According to the Saudi state news agency, Iranian Foreign Minister Abbas Araghchi discussed the regional escalation and efforts to resolve it with Saudi Foreign Minister Faisal bin Farhan bin Abdullah.

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Al Jazeera reported that Araghchi said Iran was ready to help launch dialogue between Saudi Arabia and Yemen’s Houthis. Oil prices are expected to remain volatile due to the U.S.-Iran conflict, as well as the impact of Hurricane Isaias on U.S. energy producers.

UOB analysts said Hurricane Isaias had intensified to Category 3, with wind speeds of 120 miles per hour, as it approached the U.S. Gulf Coast and forced energy companies to cut offshore production. They also said that Houthi missile strikes on Riyadh airport, which, according to their data, killed 12 people and injured more than 300, significantly increased the geopolitical premium in oil prices.