Oil falls as Trump expected to ease sanctions on Russia

Oil drilling rigs

Oil prices eased today, Jan. 20, amid expectations that the incoming US administration of President Donald Trump will ease sanctions on the Russian energy sector in exchange for reaching an agreement to end the war in Ukraine.

International benchmark Brent crude was trading down 0.42% at $80.45 a barrel, at 09:30 am Makkah time. West Texas Intermediate (WTI) crude futures for February delivery fell 0.18% to $77.74 a barrel, the more active March counterpart slipped 0.28% to $77.17 a barrel.

Investors and economists are closely tracking Trump’s upcoming inauguration today. He is expected to announce a series of decisions in the first hours of his presidency, including canceling the temporary ban on issuing permits to export liquefied natural gas, Reuters reported.

ANZ analysts explained in a note to clients that the increase in black gold prices resulting from the recent US sanctions on the Russian oil sector may not last for a long time, and this will depend on Trump's policies in this regard.

Trump previously promised to help end the Russian-Ukrainian war in a short period of time, and may resort to easing sanctions on the Russian oil sector to achieve this.

The latest round of US sanctions on Russia has been a supportive factor for oil prices since they were imposed on Jan. 10, targeting two major oil producers and 183 tankers in Moscow’s shadow fleet.