Oil Prices Climb on Middle East Supply Fears Despite G7 Reserve Release
Oil prices edged higher on Tuesday, October 6, as ongoing security concerns in the Middle East kept a geopolitical risk premium in the market. Despite steady oil exports from the region and the G7's decision to release emergency reserves, worries about supply disruptions persisted.
Brent crude futures climbed 27 cents, or 0.3%, to $100.59 a barrel, while U.S. West Texas Intermediate crude futures rose 30 cents, or 0.3%, to $89.73 a barrel. Shipping data revealed that oil exports from the Middle East surpassed pre-war levels on several days in late September, thanks to alternative routes and logistical adjustments.
However, the situation remains unstable. New attacks on tankers in the Strait of Hormuz have increased, and oil flows from Persian Gulf countries, excluding Iran, reached over 81% of pre-war levels. Saudi Arabia's exports recovered despite attacks, while Iran's exports dropped to zero due to a U.S. blockade.
The G7 countries agreed to release 100 million barrels of diesel and crude oil from strategic reserves, easing supply concerns further. U.S. President Donald Trump also signed an executive order aimed at lowering diesel prices.