Oil Prices Decline as G7 Releases Emergency Reserves and Middle East Exports Rise
Oil prices fell slightly on Monday due to rising global crude supplies. The G7 agreed to release 100 million barrels of diesel and crude from emergency reserves, responding to pressure from U.S. President Donald Trump. This move, combined with increased Middle Eastern exports, eased market concerns about supply shortages.
As of 7:15 am IST, Brent Crude dropped 0.54% to $101.70, while WTI Crude declined 0.92% to $90.27. The G7's decision to avoid energy export restrictions coincided with higher crude exports from the Middle East, despite ongoing attacks in the Strait of Hormuz.
Geopolitical tensions in the Gulf region continue to influence the market. The Houthis attacked Saudi Aramco facilities, prompting Yemen's government to launch a military campaign against them. Saudi Aramco also lowered its November crude oil prices for Asia to six-year lows.
OPEC+ postponed a review of oil output quotas for 2027, citing disruptions from the U.S.-Israeli conflict with Iran. Meanwhile, Ukraine announced plans to intensify attacks on Russian oil refineries, adding to market volatility. Brent crude has lost most of its previous week's gains, while WTI is down 1.6% following the G7's announcement.