Oil Dips as G7 Releases Reserves and Middle East Exports Rise
Oil prices declined on Monday as Middle East crude exports surged and the Group of Seven (G7) nations announced plans to release 100 million barrels of diesel and crude from emergency reserves. Brent crude futures dropped by 72 cents, or 0.71%, to $101.59 a barrel, while US West Texas Intermediate (WTI) crude fell by $1.05, or 1.2%, to $90.05 a barrel.
The G7's decision, made on Friday, aimed to boost supplies and ease concerns over potential disruptions caused by the ongoing US-Israeli war on Iran. Despite attacks on vessels in the Strait of Hormuz, Middle East crude exports exceeded pre-war levels in four of the final week of September, according to shipping data.
Analysts noted that the G7's release of strategic reserves and the return of Saudi export volumes to pre-war levels helped subdue oil prices. Tim Waterer, chief analyst at KCM Trade, said that while supply anxiety has eased, risks of further damage to Gulf energy infrastructure remain.
Meanwhile, Yemen's Houthis claimed attacks on Saudi Aramco sites, and Ukraine's president announced plans to intensify strikes on Russian oil refineries. OPEC+ also delayed a review of 2027 oil output quotas due to disruptions from the Iran war, adding uncertainty to future production estimates.