Oil prices fall as Trump backs down on Colombia sanctions threat

Oil prices fell on Monday after the United States backed down on threats to impose sanctions on Colombia, easing concerns that crude supplies were imminently disrupted.

Brent crude futures fell 40 cents, or 0.51 percent, to $78.10 a barrel. U.S. West Texas Intermediate crude fell 41 cents, or 0.55 percent, to $74.25.

The White House said on Sunday that Washington had quickly backed down on plans to impose sanctions and tariffs on Colombia after it agreed to accept migrants deported from the United States.

Kpler data showed Colombia sent about 41 percent of its seaborne crude exports to the United States last year.

“Even if sanctions are not imposed, it still creates tension with the idea that Trump will threaten anyone to get what he wants,” said Bjarne Schieldrop, senior commodities analyst at SEB.