Oil Prices Dip as G7 and Middle East Boost Supplies

Oil prices saw a slight decline on Monday as concerns over global energy supplies eased with additional crude entering the market. The Group of Seven (G7) countries agreed to release 100 million barrels of diesel and crude from emergency reserves, a move influenced by pressure from US President Donald Trump. The G7 also pledged not to impose energy export restrictions, aiming to stabilize the market amid ongoing tensions in the Middle East.

Middle Eastern crude exports have already increased, surpassing pre-war levels on four of the seven days in late September, despite attacks on vessels in the Strait of Hormuz. The market remains sensitive to developments in the Gulf, particularly as the Houthis launched attacks on Saudi Aramco sites in response to Saudi-led strikes in Yemen. Saudi Arabia announced a major military campaign to retake areas controlled by the Houthis, further complicating the region's stability.

Aramco unexpectedly reduced its November crude oil prices for Asia to six-year lows, a move reported by Reuters. Meanwhile, OPEC+ postponed a review of oil output quotas for 2027, citing disruptions from the US-Israeli war on Iran, which has affected production capacity expansion projects. Ukrainian President Volodymyr Zelenskyy also indicated that Ukraine would intensify attacks on Russian oil refineries, adding another layer of uncertainty to the global oil market.

As of 7:15 am IST, Brent Crude was down 0.54% at $101.70, while WTI Crude fell 0.92% to $90.27. Despite the ongoing Middle East conflict, which has stretched beyond seven months, oil prices have remained volatile but have not reached the spikes seen earlier in the conflict, when crude touched $126 per barrel.