Oil Holds Near $104 as Trump’s Russian Diesel Deal Draws Fire

Prices early Monday

Brent crude, the international standard, edged 0.1% higher to $104.76 per barrel early Monday, while US benchmark crude fell 0.4% to $91.50, the Associated Press reported. AP said oil prices have continued to yo-yo because of uncertainty about when the war with Iran will allow the global energy industry to return to normal.

The diesel deal

Trump announced on social media Friday that he had struck a deal with Russian President Vladimir Putin to buy Russian diesel, aiming to ease fuel prices, AP reported. AP also reported that a University of Michigan survey put inflation expectations at 4.7%, and that the dollar traded at 158.43 yen while the euro stood at $1.1191.

According to AP, Trump said Russia will immediately supply more than 300,000 tons of diesel to the American and global market, followed by 500,000 tons in November, 1 million tons “immediately thereafter” and later 3 million tons.

Pushback in Washington

AP noted that the plan runs counter to US efforts to cut the money Russia earns from oil and gas sales, and that Congress has passed legislation directing tariffs on importers of Russian oil. A bipartisan group of six senators called on Sunday for the administration to “immediately reverse course,” AP reported.