
World oil prices have stabilized around $105.4 per barrel amid the energy truce between Russia and Ukraine announced by Donald Trump, but analysts doubt the effectiveness of the deal.
AI-generated summary
The US President announced an energy truce between Russia and Ukraine, implying a renunciation of attacks on the energy infrastructure.
During trading on Monday, October 12, world oil prices stabilized against the background of the energy truce between Russia and Ukraine announced by US President Donald Trump. This is evidenced by Investing data.
Closer to 12:25 Moscow time, quotes for the benchmark North Sea oil brand Brent stabilized around $105.4 per barrel. The increase to the closing level of the previous trading session by that time was 0.65 percent.
Stock market participants are now assessing the real consequences of the truce announced by Trump. The head of the White House previously said that both sides of the conflict agreed to make temporary concessions and not attack each other’s energy infrastructure.
However, whether this condition will actually be met remains unknown. Uncertainty in the global energy market still remains, analysts say. In addition, Russia has already introduced a ban on the export of key fuels. The truce, even if it is implemented, explained PVM analyst Tamas Varga, is unlikely to eliminate the imbalance of global supply and demand. “The immediate impact of the deal is questionable,” he stated.

OPEC Secretary General Haitham Al Ghais said that the average daily global demand for raw materials will increase by 400 thousand barrels against the expected 1.4 million. The forecast has been reduced by 3.5 times due to factors preventing the situation from normalizing.

Russian diesel fuel will hit the US market during October. This opinion was expressed by the head of the State Duma Committee on the Financial Market, Anatoly Aksakov, citing the interest of the American side before the elections in early November.

In the Estonian city of Narva, heating tariffs increased by 28% to 170 euros per megawatt-hour due to the switch to gas. Residents are wary of new bills amid low wages and are looking for ways to save.

Analysts at Goldman Sachs raised their December forecast for the price of Brent oil from $85 to $90 per barrel amid limited supply, supply disruptions through the Strait of Hormuz and attacks on the region's energy infrastructure.

Agreements between Russia and the US on diesel fuel supplies will positively impact Russia by easing sanctions pressure and logistics, according to US expert Kyle Shostak.

Hungary will not be able to completely stop importing Russian gas by the fall of 2027, as required by the European Union’s decision, says Gabor Stier, a foreign policy observer for Demokrata. According to him, even experts around the government confirm that this is impossible in a year, and some of the gas may remain from Russia.