The price of Brent oil reached 104 dollars

The price of Brent oil decreased by 1 dollar and reached 104 dollars in the shadow of the energy ceasefire between Ukraine and Russia.

Oil prices fell in Monday's trading following increased expectations about more supply of Russian oil and oil products. These developments occurred after US President Donald Trump announced that Russia and Ukraine had agreed to stop attacks on each other's energy facilities; The issue that was raised after the agreement between Washington and Moscow to supply diesel fuel from Russia.

According to Ambassador Arjan, the price of Brent oil decreased by one dollar, equivalent to 1%, to $104 and 18 cents per barrel.

US West Texas Intermediate crude oil was traded at the level of 90 dollars and 31 cents per barrel, with a drop of 1 dollar and 54 cents, equivalent to 1.68%.

Also, the price of diesel futures on the Intercontinental Exchange (ICE) decreased by 3% to $1,436 per ton.

Increasing the supply of Russian diesel to world markets

Trump announced on Friday that Russia will immediately supply more than 300,000 tons, equivalent to 2.25 million barrels, of diesel to the American and global markets. According to him, Russia will supply another 500,000 tons in November and then one million tons.

According to the estimate of the International Energy Agency, the daily consumption of diesel in the world is close to 29 million barrels.

Trump also unexpectedly announced on Sunday that Russia and Ukraine have agreed to a ceasefire in the energy sector. However, Ukrainian President Volodymyr Zelensky said he was still waiting to receive details of the agreement, and Russia has not yet commented on the matter.

The announcements have eased some of the immediate pressure on supply, said Tim Waterer, senior analyst at KCM Trade.

He added: "Questions remain about the validity and durability of this ceasefire, and until clearer evidence of the parties' adherence to it is provided, the scope of price cuts will likely remain limited."

Fatih Birol, executive director of the International Energy Agency, also said on Sunday that all members should assess the need to release more diesel reserves. He also demanded that the countries that have not yet released all their committed volumes to the market should speed up the process of releasing the remaining reserves and prioritize diesel.

The continuation of tensions in the Middle East increases the price of oil

Despite the decline in prices, the Middle East conflict continued to support the price of Brent oil, keeping it above $100 per barrel.

Ansarullah took responsibility for Saturday's attack on Riyadh International Airport; An attack that killed 13 people and injured more than 300 people. Saudi officials also reported that people were injured in a new attack on this airport on Sunday.

Donald Trump announced on Saturday that the United States is considering joining Saudi Arabia's attacks against the Houthis. These developments took place in the continuation of the expansion of regional conflicts that started after the war between America and Israel against Iran in February.

In addition, there are reports of more attacks on oil tankers passing through the Strait of Hormuz this month; Developments that could disrupt the recovery process of Middle East oil exports that was observed in September.

According to the report of the UK Maritime Trade Operations Organization (UKMTO), an oil tanker was targeted by a drone attack near the Sohar anchorage in Oman, and another oil tanker was damaged by an unidentified projectile while passing through the Strait of Hormuz.

Goldman Sachs increased Brent oil price forecast

Meanwhile, investment bank Goldman Sachs raised its forecast for December Brent oil prices to $90 per barrel from $85.

Analysts of this bank announced in a note: "We still believe that the continued adjustment of the Middle East oil supply to the existing conditions will eventually reduce the price of crude oil; "However, the possibility of a re-escalation of tensions still poses a significant upside risk to prices."

Goldman Sachs analysts also estimated that the exposure to geopolitical developments in oil prices is slightly more than $20 per barrel.