Oil prices dip as G7 and Middle East boost crude supplies
Oil prices saw a slight dip on Monday as global energy supply concerns eased with more crude entering the market. The Group of Seven (G7) agreed to release 100 million barrels of diesel and crude from emergency reserves, a move pushed by US President Donald Trump. The G7 also pledged not to impose energy export restrictions, which helped stabilize the market.
Middle Eastern crude exports have also increased, with shipping data showing exports above pre-war levels on four of the seven days in the final week of September. Despite attacks on vessels in the Strait of Hormuz, the supply disruptions have not significantly impacted the market.
The oil market remains volatile due to ongoing conflicts in the Gulf. The Houthis claimed they launched ballistic missiles and drones at Saudi Aramco sites in Riyadh and Khurais, in response to Saudi-led strikes in Yemen. Meanwhile, Yemen's Saudi-backed government announced a major military campaign to retake areas controlled by the Houthis.
Aramco unexpectedly reduced its November crude oil prices for Asia to six-year lows, according to Reuters. Additionally, OPEC+ postponed a review of oil output quotas for 2027 due to uncertainties caused by the US-Israeli war on Iran. Ukrainian President Volodymyr Zelenskyy also indicated that Ukraine would escalate attacks on Russian oil refineries, further influencing market dynamics.