Brent Crude Rebounds as G7 Releases Oil Stocks Amid Saudi Attacks

Brent crude futures experienced a rebound after initial losses, following fresh attacks by the Houthis in Saudi Arabia. The attacks come on the heels of a G7 agreement to release up to 100 million barrels of oil, including a significant but unspecified amount of diesel. This coordinated effort aims to stabilize global oil markets amid rising tensions in key oil-producing regions.

The recent Houthi attacks targeted critical Saudi infrastructure, including Saudi Aramco's Riyadh refinery and the East-West pipeline, which has reportedly shut down again. These attacks have heightened concerns over supply disruptions in the Middle East, a region crucial for global oil production.

Despite the attacks, Brent crude futures managed to recover from early losses, indicating market resilience in the face of geopolitical risks. The G7's decision to release additional oil stocks is seen as a measure to counteract potential supply shortages and maintain market stability.

US President Donald Trump ruled out a diesel export ban, further supporting efforts to ensure adequate oil supply. The G7's plans for a 100-million-barrel oil stock release builds on a previous coordinated effort in March, demonstrating ongoing international cooperation to manage oil market volatility.