G7 Reserve Release and Rising Exports Push Oil Prices Lower
Oil prices dropped on Monday due to increased Middle East crude exports and the decision by the Group of Seven (G7) nations to release oil stocks. Brent crude futures fell 66 cents, or 0.65%, to $101.59 a barrel, while US West Texas Intermediate (WTI) crude declined 95 cents, or 1.03%, to $90.12 a barrel.
The G7's agreement to release 100 million barrels of diesel and crude from emergency reserves, along with a pledge to avoid energy export restrictions, contributed to the price decline. Middle Eastern crude exports also surged above pre-war levels in the final week of September, despite attacks on vessels in the Strait of Hormuz.
Tim Waterer, chief analyst at KCM Trade, noted that the G7's strategic reserve release and rising Saudi export volumes are easing supply concerns, despite ongoing risks to Gulf energy infrastructure. Meanwhile, the Houthis claimed attacks on Saudi Aramco sites, though these were not confirmed by Saudi authorities.
In other developments, OPEC+ postponed a review of 2027 oil output quotas due to the Iran war's disruption of expansion projects. Additionally, Ukrainian President Volodymyr Zelenskiy indicated plans to intensify attacks on Russian oil refineries.