Oil prices fell on Monday
(MENAFN- MENAFNEditorial) Oil prices fell on Monday as Washington's moves to ease restrictions on Russian energy flows strengthened expectations of improving supply. The US administration used a waiver to prevent new sanctions and tariffs on Russia from taking effect and is considering looser restrictions on tankers that have carried Russian, Iranian and Venezuelan crude, alongside an agreement for additional Russian diesel deliveries. At the same time, ongoing disruptions in Eastern Europe constrain Russia's ability to raise exports.
Risks in the Middle East provide support and could limit the extent of the current decline. Tensions between Saudi Arabia and the Houthis remain elevated, while traffic through the Strait of Hormuz continues to face restrictions amid security incidents. Negotiations over reopening the waterway have made little progress, leaving prices supported.
Looking ahead, crude could remain under pressure as the US measures take shape. Additional relief and progress towards reopening Hormuz would strengthen the bearish case by improving actual flows. Conversely, further disruption to Russian export infrastructure or an escalation in the Middle East could offset the expected policy relief and restore upward pressure, although Washington's efforts to bring more Russian supply to market may temper the extent of any rebound.
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