Crude Oil Edges Higher Amid Middle East Supply Tug-of-War

Crude oil prices on the New York Mercantile Exchange (NYMEX) edged higher on the 6th, ending a two-day decline. Front-month West Texas Intermediate (WTI) for November delivery settled at $89.44 per barrel, up slightly from the previous day. The market remained cautious due to ongoing uncertainties about Middle East energy supplies, although expectations of easing global supply-demand conditions kept prices in check.

Brent crude futures rose to $100.58 per barrel, recovering from early losses. The market weighed increased crude exports from the Middle East and the Group of Seven (G7) plan to release diesel fuel from emergency reserves against supply concerns tied to attacks by Yemen's Iran-aligned Houthi militant group. Saudi Arabia reported that two airports were targeted in recent attacks, while a Saudi-led coalition intercepted a ballistic missile launched by the Houthis.

Despite the supply risks, crude exports from the Middle East have shown resilience. Saudi Energy Minister Abdulaziz bin Salman noted that the volume of oil transported via the East-West pipeline had reached 5.8 million barrels per day. Russell Hardy, CEO of Vitol, disclosed that approximately 12 million barrels per day of crude oil and 2 million barrels per day of refined products had been shipped from the Middle East recently. European research firm Kpler reported that Middle East crude exports exceeded pre-U.S.-Iran conflict levels on four of the final seven days of September.

Meanwhile, the G7's decision to release 100 million barrels of crude oil and diesel from emergency reserves weighed on the market. Analysts noted skepticism about the overlap with previous emergency releases. Gold futures rebounded to $4,187.10 per troy ounce, up $30.30 from the previous day, as U.S. long-term yields declined. Refined product market tightness persisted, influencing global inflationary pressures and central bank policy decisions.