G7's Strategic Reserve Release Sends Oil Prices Plummeting

The price of crude oil plummeted on Friday after G7 nations announced they would release up to 100 million barrels of crude and diesel supplies from their strategic reserves. The move, coordinated by the International Energy Agency (IEA), aims to ease supply concerns amid rising tensions in the Middle East.

Saudi Arabia's plans for an offensive against Houthi militants in Yemen are sparking renewed concerns about oil supplies from the region. According to Reuters, Saudi Arabia may launch an assault on several fronts along the coast of Yemen to secure safe passage for their ships transiting the Red Sea.

Despite concerns over tighter oil supplies, JPMorgan Chase reported that Middle East crude exports have rebounded to 17.5 million barrels per day (bpd), about 98% of pre-war levels. However, Saudi Arabia's August crude production fell to 6.238 million bpd, the lowest since 1990.