Brent slips to $103.18 a barrel as Kyiv says Russian strikes continued; U.S. Treasury separately authorizes Russian diesel transactions through April 7, 2027.

Oil and diesel futures fell Monday after U.S. President Donald Trump said Russia and Ukraine had agreed to halt attacks on each other’s energy facilities. Neither side had confirmed the agreement, and Ukrainian President Volodymyr Zelenskyy said he was awaiting details as reports of Russian strikes continued. 

December Brent crude futures fell $1.54, or 1.47%, to $103.18 a barrel by 0154 GMT. November West Texas Intermediate futures fell $1.54, or 1.68%, to $90.31. At 2304 GMT on Sunday, Brent had been trading 0.73% higher at $105.48. Gasoil futures, a European diesel benchmark, fell 3% to $1,436 a metric ton on Intercontinental Exchange (NYSE: ICE).

Russia restricts diesel exports

Russia has maintained restrictions on diesel exports as its government seeks to protect domestic supplies. A government ban introduced July 8 covers diesel exports. Deputy Prime Minister Alexander Novak said then that the ban would increase supplies to the domestic market. 

The government extended the restriction for fuel producers through the end of October. Novak said Oct. 2 that Russia would consider partially reopening exports if diesel output exceeds domestic demand.

Trump offers no details

Trump wrote Sunday on Truth Social: “Effective immediately, there is an ENERGY CEASEFIRE in the War between Russia and Ukraine.” 

The announcement did not include details of the agreement or explain how compliance would be monitored. Trump announced a similar ceasefire on Sept. 14, but neither Russia nor Ukraine confirmed it, and attacks on energy facilities continued.

Ukraine ties halt to Russian restraint

Zelenskyy said earlier Sunday on ABC’s “This Week” that Ukraine would stop striking Russian oil refineries if Moscow stopped attacking Ukraine’s energy system. He later told Axios that Trump’s announcement “was news for me.” 

After Trump’s post, Zelenskyy said Russian forces continued striking energy infrastructure in Kyiv and Kharkiv. His comments raised questions about whether the proposed halt had taken effect or whether both sides had agreed on its terms. 

Treasury licenses Russian diesel sales

The U.S. Treasury Department’s Office of Foreign Assets Control issued General License 135 on Friday, authorizing the sale, delivery, offloading and importation of Russian-origin diesel, including into the United States, through 12:01 a.m. EDT on April 7, 2027. 

The authorization has a financial restriction: It does not permit debits to accounts held at U.S. financial institutions by Russia’s central bank, National Wealth Fund or Finance Ministry. 

Trump cites phased diesel deliveries

Russia would supply more than 300,000 tons of diesel immediately, Trump said Friday. Another 500,000 tons would follow in November and 1 million tons “immediately thereafter.” He also described a subsequent delivery of 3 million tons, conditional on the condition of Russia’s refineries. 

According to a Kremlin statement, Russian President Vladimir Putin told Trump that Russia was ready to supply oil and petroleum products to the U.S. and global markets, according to a Kremlin statement. The statement did not specify volumes or delivery dates. 

IEA presses members on diesel releases

International Energy Agency Executive Director Fatih Birol wrote to member governments Sunday. He suggested that members that have not fully delivered volumes pledged in March accelerate the remaining releases, prioritizing diesel. Birol encouraged all members to assess whether additional diesel releases are needed and, if so, to set out their scale, timing and supplemental nature.

About 325 million barrels had been released under the March collective action, the IEA said Wednesday. The IEA governing board meets Oct. 15.