Oil falls to $108 amid Russian supply prospects, Gulf tensions

Oil prices moved lower on Monday, with Brent trading at $107.99 a barrel, a decline of 1.70%, Mettis Global reported. West Texas Intermediate fell $1.63, or 1.65%, to $97.39 by 10:40 am PST as traders weighed the prospect of more Russian crude reaching markets after US sanctions were eased.

Supply concerns remained in focus despite that prospect. Ukrainian drone operations reportedly caused fires at a St. Petersburg oil terminal and storage depot on Sunday, while the damage was not yet clear; the terminal handles about 120,000 barrels a day of refined products, mainly fuel oil. Separately, UKMTO reported attacks involving two tankers near Saudi Arabia on Friday, and continued assaults across the Persian Gulf, Strait of Hormuz and Gulf of Oman added uncertainty to export flows.