Oil prices slipped on Monday morning, driven down by expectations of more Russian supplies after U.S. President Donald Trump announced an energy ceasefire between Ukraine and Russia, Reuters reported.
Ceasefire Claims Meet Scepticism and Conflicting Realities
President Trump announced the energy ceasefire on Sunday via social media, writing on Truth Social that the agreement was effective immediately. The declaration followed a Friday announcement regarding a U.S. diesel-supply deal with Moscow. However, the diplomatic rollout faced immediate friction on the ground. According to ABC News, Russian forces struck a thermal power plant in the eastern Ukrainian city of Kharkiv twice on Sunday, causing a fire, while Ukrainian President Volodymyr Zelenskiy confirmed that a plant in Kyiv was also targeted after Trump’s public statement.
Zelenskiy told Axios that the ceasefire announcement came as a surprise, stating, “If President Trump negotiated it with Putin, please tell us when the ceasefire begins. We are ready, and we will accept it.” Meanwhile, Reuters noted that Moscow offered no immediate comment on the alleged pact. In Russia, Igor Ananskikh, deputy chairman of the State Duma Committee on Energy, told the Ukrainian news agency UNN that he had no information regarding an energy truce and suggested the U.S. president’s remarks might constitute “verbal interventions” aimed at curbing global oil prices.
Market analysts remain cautious about the longevity of any such halt in hostilities. Tim Waterer, chief analyst at KCM Trade, told Reuters that questions persist over the validity of the agreement without clearer evidence that it will hold.
Gulf Production Resumes as Financial Forecasts Shift
Farther west, energy majors including Shell, Chevron, and BP began redeploying personnel and restoring oil production platforms in the Gulf of Mexico following the landfall of Hurricane Isaias early Saturday, Reuters reported. Against this backdrop of competing supply factors, Goldman Sachs analysts led by Daan Struyven raised their December Brent crude price forecast to $90 a barrel, up from $85 previously. The financial firm estimated a geopolitical risk premium of just over $20 a barrel, while projecting that WTI prices will average $81 in December 2026 and $73 in 2027.
More on President Trump
Related reading
- Bulgaria Fuel Prices Register Sharp Surge in August
- Six senators call for Trump administration to reverse course on Russian diesel plan
- Trump Celebrates Columbus Day and Slams Democrats Over Statues (news-usa.today)
- Trump Weighs Firing Rubio Over Guilfoyle amid Midterm Uncertainty (world-today-journal.com)
