Oil slips from five-month high after Trump waives Russia sanctions

As of 7:24 a.m. ET Monday Oct. 19, 2026

Oil prices fell from a five-month high on Monday as investors took profits after President Donald Trump waived sanctions and tariffs on Russia that could lead to more Russian fuel exports, Reuters reported.

December Brent crude was down $1.24, or 1.13%, at $108.62 a barrel at 7:13 a.m. ET, according to ICE futures data on CNBC. The November West Texas Intermediate contract, which expires Tuesday, was up 2 cents, or 0.02%, at $101.43 at 7:13 a.m. ET, CNBC data showed. Earlier, at 0619 GMT (2:19 a.m. ET), Reuters reported Brent down $2.29, or 2.08%, at $107.57, after it settled Friday at its highest since May 19. Brent briefly touched $110 a barrel on Friday for the first time since May, Reuters reported.

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, Reuters reported. Secretary of State Marco Rubio said the president will use up to 60 days to assess the impact of the sanctions and tariffs on the global economy, according to Reuters.

Why it matters

Analysts quoted by Reuters said the waiver may do little to ease supply problems; Phillip Nova's Priyanka Sachdeva said it does little to address physical supply disruptions in the Strait of Hormuz, where oil tanker attacks continue.

"Until the details and duration are clearer, the market is unlikely to fully price in a sustained increase in supply," said Tim Waterer, chief analyst at KCM Trade, according to Reuters.

"Trump's move looks like another desperate attempt to keep oil prices in check ahead of the US midterm elections," said Priyanka Sachdeva, head of market insight at Phillip Nova, Reuters reported.

Attacks on commercial vessels cut Gulf crude flows to about 8.5 million barrels per day on a seven-day average last week, from more than 20 million barrels per day the week before, analytics firm Kpler said in a note Friday, according to Reuters.

The waiver follows a deal between Trump and Russian President Vladimir Putin for Russia to export diesel to the United States and other countries, starting at about 2.3 million barrels this month and rising to about 7.6 million barrels a month, Reuters reported.

DBS expects oil to stay in a range of $100 to $110 a barrel heading into the U.S. midterm elections, Reuters reported. "The US president is trying various moves to suppress prices ahead of the midterms without any direct concession to Iran," said Suvro Sarkar, DBS's head of energy research. "However, all the levers he has pulled – including waivers on Russia sanctions – are short-term fixes and will have barely any structural impact on the supply situation."