G7 Reserve Release Drives Oil Prices Down

Oil prices fell on Monday as the G7's decision to release emergency oil reserves eased some market concerns about supply. Brent crude dropped 0.7% to $101.59 a barrel, while West Texas Intermediate (WTI) declined 1.2% to $90.05. The G7 countries agreed to release 100 million barrels of diesel and crude over several months, which helped reduce immediate supply anxieties according to KCM Trade Chief Analyst Tim Waterer.

The price decline followed an increase in Middle East crude exports, which exceeded pre-war levels on several days in late September. By early October, average flows reached about 18.5 million barrels per day, up from roughly 18 million before the conflict. However, ongoing risks in the Gulf, including attacks and shipping disruptions, limited the extent of the price drop.

OPEC+ maintained its November production targets unchanged, while a capacity assessment meant to determine members’ 2027 output quotas was delayed until mid-November due to regional disruptions. Despite recovering crude volumes, oil-market logistics remain strained, with higher tanker and insurance costs complicating the movement of Middle Eastern supply.