Oil slips as Trump's sanction waiver may lead to more Russian fuel supplies

SINGAPORE: Oil prices slipped on Monday after US President Donald Trump waived sanctions and tariffs on Russia that may lead to more Russian fuel exports.

Brent crude futures fell US$1.43, or 1.3 per cent, to US$108.43 a barrel by 2340 GMT after settling at its highest since May 19 on Friday.

US West Texas Intermediate crude was at US$100.88 a barrel, down 53 cents, or 0.52 per cent.

Trump signed an executive order on Friday waiving key sanctions and tariffs under the law known as the Graham Act, which he signed last month at the urging of lawmakers who want to pressure Moscow over its war in Ukraine.

However, Secretary of State Marco Rubio said the president will use up to 60 days to assess the economic impact of the waiver.

The move comes after Trump struck a deal with Russian President Vladimir Putin to export diesel to the United States. Ukrainian President Volodymyr Zelenskiy said these US actions will hurt Ukraine.

Brent crude oil briefly touched US$110 a barrel on Friday for the first time since May as tensions and security threats in the Middle East raised concerns over the safety of shipping and tighter global energy supplies.

Intensified attacks on commercial vessels cut Gulf crude flows sharply to about 8.5 million barrels per day on a seven-day average last week from more than 20 million bpd the week before, analytics firm Kpler said in a Friday note. At least 10 confirmed incidents involving commercial vessels were reported last week, it added.

Potentially raising the stakes in the Middle East war, Egypt said it is ready to provide Saudi Arabia with the support it needs to defend its security and stability against Yemen's Iran-allied Houthis.