Brent crude falls as G7 releases emergency oil stocks

Brent crude oil prices fell by $3.55 per barrel on the day, reaching $99.00 per barrel at 09.00 GMT. The drop came despite ongoing geopolitical tensions in the Middle East, which have kept upward pressure on prices.

Tensions between Saudi Arabia and Yemen’s Iran-aligned Houthis escalated after the militant group attacked a refinery operated by Saudi state-owned oil company Aramco. The Houthis also warned international airlines to avoid Saudi airspace, citing it as an active war zone following attacks on two airports. Analysts from ING Bank noted that while oil flows from the Persian Gulf are showing signs of recovery, the market remains anxious about potential supply disruptions.

The decline in Brent prices followed an announcement by the Group of Seven (G7) countries and their partners to release up to 100 million barrels of emergency crude oil stocks over the next four months, coordinated with the International Energy Agency (IEA). This move offset some of the gains made earlier in the week.

Additionally, crude oil production across the Persian Gulf has shown improvement as regional operators adapt to the evolving geopolitical landscape. Kuwait reported producing at 75% of pre-war levels, and Saudi Arabia cut the official selling price of its Arab Light crude for November loadings, signaling an improving supply picture.