Brent tops $106 as doubts grow over supply boost from Trump’s ‘energy ceasefire’

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 benchmark Brent crude for December delivery rose 0.69% to $105.44 a barrel. U.S. West Texas Intermediate futures for November ticked 0.54% higher to $92.35 per barrel. Prices on both benchmarks had fallen by around 1.5% earlier in the session.

"Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine. Both parties have agreed. Do not break it!" Trump said in a social media statement Sunday stateside.

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

Prospects of more Russian energy hitting markets after a deal with the U.S. have also risen after Trump said Friday that Moscow will supply more than 4 million tons of diesel to the global market under a deal he struck with Putin during a phone call.

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

"The pressure on oil prices could remain on the upside as Hurricane Isaias strengthened to Category 3 with 120mph winds as it approached the US Gulf Coast, forcing energy producers to curtail offshore output," UOB said in a note on Monday.

"Separately, Houthi missile strikes on Saudi Arabia's Riyadh airport on Sat which killed 12 people and injured over 300, have materially elevated Middle East risk premia," UOB added.