Oil prices today: Brent and WTI rise

Oil prices reversed initial losses early Monday, despite the potential for improved supplies after U.S. President Donald Trump declared an “energy ceasefire” between Russia and Ukraine.

Futures for international reference Brent crude for December delivery rose 0.69% to $105.44 per barrel. WE West Texas Intermediate Futures for November, it rose 0.54% to $92.35 per barrel. Prices of both benchmarks had fallen around 1.5% earlier in the session.

“Effective immediately, there is an ENERGY CEASEFIRE in the war between Russia and Ukraine. Both sides agree. Don’t break it!” Trump said in a statement on social media in the United States on Sunday.

Oil reversed its losses after Ukrainian President Volodymyr Zelensky welcomed such a ceasefire, but warned on Monday that Moscow must do the same.

Prospects of more Russian energy hitting markets after a deal with the United States also increased after Trump said Friday that Moscow would supply more than 4 million tons of diesel to the global market under a deal he struck with Putin in a phone call.

According to the Saudi state news agency, Iranian Foreign Minister Abbas Araghchi telephoned Saudi Foreign Minister Faisal bin Farhan bin Abdullah to discuss the recent escalation of events in the region as well as efforts to address them.

Al Jazeera reported that Araghchi said Iran was ready to provide assistance to facilitate the start of dialogue between Saudi Arabia and Yemen’s Houthis.

Oil prices are expected to remain volatile in the near term as the US-Iran conflict continues, while the impact of Hurricane Isaias on US energy producers could also hurt supplies.

“Pressure on oil prices could remain on the rise as Hurricane Isaias strengthened to Category 3 with winds of 120 mph as it approached the US Gulf Coast, forcing energy producers to cut offshore production,” UOB said in a note on Monday.

“Moreover, the Houthi missile strikes on the Saudi airport in Riyadh on Saturday, which killed 12 people and injured more than 300, significantly raised risk premiums in the Middle East,” UOB added.