Brent crude reaches $110 a barrel, highest since 20 May, amid diesel deal doubts
In short
Brent crude rose to $110 a barrel for the first time since 20 May, Kommersant and TASS reported on 16 October. RBC linked the rise to growing doubts about the diesel deal, and Kommersant said a US Democratic House member's move to block the US-Russia diesel deal drove the jump.
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December futures for Brent crude rose to $110 a barrel on the London exchange ICE on 16 October, Kommersant reported. It said this was the highest level since 20 May. TASS also reported that Brent reached $110 for the first time since 20 May, adding that by 22:00 Moscow time the growth had slowed to $109.61 a barrel. [ 2 , 3 ]
Earlier in the evening, RBC reported that Brent had risen above $109 a barrel for the first time since 15 September. It said quotations were rising amid growing doubts about the diesel deal. Kommersant said WTI rose 3.5% over the day to $101.4 a barrel. [ 1 , 2 ]
According to Kommersant, Brent rose sharply after Gregory Meeks (Грегори Микс), a Democratic member of the House of Representatives, introduced a measure blocking the diesel deal between the United States and Russia. [ 2 ]
Kommersant recalled that Russian President Vladimir Putin and US President Donald Trump agreed on Russian diesel supplies to the world and American markets in a phone call on 9 October. Its text also refers to a licence the US Treasury needed for the deal and to the Russian government's partial action on the ban on diesel exports; the available text does not give the details. [ 2 ]
Why it matters
The documents tie the oil price move to the fate of a diesel supply deal agreed by the presidents of Russia and the US. They give no further basis for wider consequences.
Key facts
- December Brent futures rose to $110 a barrel on the London exchange ICE, the highest level since 20 May, Kommersant reported. [ 2 ]
- TASS reported that Brent reached $110 for the first time since 20 May, and that by 22:00 Moscow time growth had slowed to $109.61 a barrel. [ 3 ]
- RBC reported that Brent rose above $109 a barrel for the first time since 15 September. [ 1 ]
- WTI rose 3.5% over the day to $101.4 a barrel, according to Kommersant. [ 2 ]
- Kommersant said the Brent price rose sharply after Democratic House member Gregory Meeks (Грегори Микс) introduced a measure blocking the US-Russia diesel deal. [ 2 ]
- Vladimir Putin and Donald Trump agreed on Russian diesel supplies to the world and US markets in a phone call on 9 October, Kommersant reported. [ 2 ]
Confirmed by several sources
Still unclear
- What exactly is behind the rise in Brent. RBC cites growing doubts about the diesel deal, while Kommersant attributes the sharp rise to the measure introduced by Gregory Meeks; only these two outlets address the cause.
- What the measure introduced by Meeks would do and how likely it is to pass. The Kommersant text available says only that it blocks the diesel deal; no document gives details or its prospects.
- Whether Brent will hold near $110. TASS said growth had slowed to $109.61 by 22:00 Moscow time; no document gives a later price.
What local media are saying
Timeline, local time
- RBC reports Brent above $109 a barrel for the first time since 15 September. [ 1 ]
- Brent growth slows to $109.61 a barrel, Moscow time, per TASS. [ 3 ]
- Kommersant reports December Brent futures at $110 a barrel, the highest since 20 May. [ 2 ]
- TASS reports Brent reached $110 for the first time since 20 May. [ 3 ]