Oil eases and U.S. futures rise after Trump’s diesel deal and energy ceasefire claim
Oil prices slipped Monday and U.S. stock futures edged higher after President Donald Trump’s Friday diesel supply deal with Russia and his Sunday claim of a Russia-Ukraine “energy ceasefire.” Analysts say the promised Russian diesel volumes are too small to move U.S. prices much.
What moved: Oil eased on Monday and U.S. stock futures were modestly higher, the Wall Street Journal and CNBC reported. The Journal had Brent crude, the global benchmark, down 0.6% at $104.90 a barrel and U.S. benchmark West Texas Intermediate (WTI) down 0.8% at $91.10. Figures varied through the morning: an AP report carried by The Republic put Brent down about 1.4% at $103.31.
Why: Traders were weighing Trump’s Sunday announcement that Russia and Ukraine had agreed to an “energy ceasefire” — which Moscow had not confirmed — and the Russian diesel deal announced Friday, CNBC reported.
The diesel deal: Trump said Russia will supply 300,000 metric tons of diesel immediately, 500,000 tons in November and 1 million tons a month after that, plus up to 3 million more tons depending on refinery capacity, CNBC reported. The U.S. Treasury issued a temporary license easing sanctions to allow the trade.
Will it help at the pump? Analysts doubt it, CNBC reported. Jefferies’ Mohit Kumar said the volumes are unlikely to make a substantial difference. Former International Energy Agency (IEA) official Neil Atkinson estimated the first 300,000 tons equal about 70,000 barrels a day over a month, against U.S. diesel use of about 3.7 million barrels a day. The AAA national average for diesel hit a record $6.5276 a gallon in late September, CNBC noted.
Elsewhere: Asian shares were mixed, with South Korea’s Kospi sharply lower and Tokyo markets closed for a holiday, AP reported. Houthi attacks on Saudi airports and wider Middle East tensions continue to weigh on the energy outlook, the Journal reported.
Week ahead: Investors are watching U.S. inflation data, retail sales and earnings from big banks, according to the Journal and AP.