Oil prices fell on Monday from their highest levels in five months.
The decline came as investors moved to lock in profits.
It followed US President Donald Trump granting Russia exemptions from sanctions and tariffs, a move that could allow an increase in Russian fuel exports.
Brent crude futures fell by $2.68, or 2.44%, to $107.20 a barrel.
US West Texas Intermediate crude also dropped 1.76%, settling at $99.63 a barrel.
US exemptions and market anticipation
Trump signed an executive order granting the exemptions, while Secretary of State Marco Rubio announced a period of up to sixty days to assess the impact of the economic sanctions.
Trump also announced an agreement with Russian President Vladimir Putin to export diesel to the United States and other countries.
Shipments are set to begin at around 2.3 million barrels this month, before rising to about 7.6 million barrels per month.
Even so, analysts say the lack of clarity over the details and duration of the exemptions limits expectations of a sustained increase in supply.
Supply concerns persist
Meanwhile, security tensions in the Middle East continue to put pressure on energy supplies, particularly amid ongoing attacks on oil tankers.
According to Kpler, Gulf crude flows fell to an average of 8.5 million barrels per day last week, down from more than twenty million barrels the week before.
As a result, markets are awaiting clarity on US decisions and developments in shipping routes to determine the next direction for oil prices.
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