Oil fell Monday on optimism of improved supplies after President Donald Trump said that Russia and Ukraine will not be targeting each other's energy facilities, while Iran reached out to Saudi Arabia after Houthi attacks against the kingdom.
Futures for international benchmark Brent crude for December delivery dropped 1.65% to $102.99 a barrel. U.S. West Texas Intermediate futures for November declined 1.92% to $90.09 per barrel.
"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.
Ukrainian President Volodymyr Zelenskyy said in a post on social media that "Ukraine supports the ceasefire, and it is important that Russia support it as well."
Prospects of more Russian energy hitting markets after a deal with the U.S. have also risen after Trump said Friday that Russia will supply more than 4 million tons of diesel to the global market under a deal he struck with Putin during a phone call.