Oil prices climbed on Monday, October 12, as Donald Trump’s announcement of an energy ceasefire between Russia and Ukraine failed to produce a confirmed halt to attacks.
NBC News reported that Brent crude rose about 2% to nearly $108 a barrel, while US crude gained more than 2% to around $94. Diesel futures also erased their small decline from the previous week.
Ceasefire announcement meets continued attacks
Trump declared on Sunday that an agreement to stop attacks on energy infrastructure was effective immediately.
However, Ukrainian President Volodymyr Zelenskyy said Kyiv had received no advance warning and remained willing to stop targeting Russian energy facilities only if Moscow reciprocated. Russian attacks on Ukrainian energy infrastructure continued, while the Kremlin did not confirm its participation on Monday.
The uncertainty weakened expectations that the announcement would quickly ease fuel-supply pressure.
Diesel deal faces delivery questions
The ceasefire announcement followed Trump’s October 9 agreement with Vladimir Putin to increase Russian diesel supplies, supported by temporary US sanctions relief.
Questions remained about delivery schedules and Russia’s ability to expand exports while damaged refineries and domestic fuel needs constrained production.
Related: What’s in the Diesel Deal Between Putin and Trump?.
Higher fuel costs keep pressure on households
The average US diesel price reached $6.26 a gallon on Monday, nearly 80% above its level at the start of the year, according to AAA figures cited in the report.
Expensive diesel raises costs across trucking, farming and distribution, potentially feeding into the prices businesses charge customers.
The market reaction showed that announcements alone were insufficient to ease supply concerns. Sustained relief depends on fewer attacks, functioning refineries and additional fuel reaching buyers.
Disclosure: This article does not represent investment advice. The content is for informational and educational purposes only.
