Brent crude traded near $107.80 a barrel early Monday, down almost 2% from Friday’s $109.86 settlement, while WTI slipped to about $97.40 from $101.41. The retreat erased part of last week’s gains after both benchmarks touched multi-month highs.
The benchmarks extended losses in Asian sessions trade. Friday’s settlement marked Brent’s highest close since May 19.
The decline followed President Donald Trump’s executive order waiving key sanctions and tariffs under the Graham Act, raising prospects of higher Russian fuel exports. Secretary of State Marco Rubio said the administration would assess the economic impact over up to 60 days.
Traders also weighed a recent U.S.-Russia diesel export arrangement against ongoing Ukrainian strikes on Russian energy infrastructure. Ukrainian President Volodymyr Zelenskyy warned the U.S. moves would harm Kyiv’s position.
Friday’s rally had been driven by escalating Middle East risks, including Houthi attacks near Saudi export terminals and reported tanker strikes in the Persian Gulf. Analytics firm Kpler earlier noted Gulf crude flows had fallen sharply on a seven-day average.
Despite Monday’s pullback, prices remain elevated. Brent is up roughly 75–77% year-to-date and WTI about 70%, reflecting persistent supply concerns from the Russia-Ukraine conflict and Strait of Hormuz disruptions that began earlier in 2026.
The Brent-WTI spread stayed wide near $10 a barrel, underscoring tighter seaborne availability relative to U.S. inland supply. Physical markets continue to signal tightness, particularly in refined products such as diesel.
Market participants will monitor further developments on sanctions relief, vessel security in the Gulf, and any resumption of energy infrastructure attacks. Inventory data and OPEC+ policy signals remain additional near-term drivers.
