Oil Prices Dip as G7 Releases Reserves Amid Middle East Tensions
Oil prices dropped slightly on Monday as increased crude exports from the Middle East and a planned release of oil stocks by the Group of Seven (G7) nations helped ease supply concerns. The declines came despite ongoing geopolitical tensions and attacks on Gulf oil infrastructure. Brent crude futures fell 0.65% to $101.59 a barrel, while US West Texas Intermediate (WTI) crude dropped 1.03% to $90.12 a barrel.
The G7's decision to release 100 million barrels of diesel and crude from emergency reserves, along with pledges to avoid energy export restrictions, contributed to the price declines. The move came after shipping data showed Middle Eastern crude exports rising above pre-war levels in the final week of September, despite attacks in the Strait of Hormuz. Analyst Tim Waterer noted that the G7's action and the return of Saudi export volumes to near pre-war levels are helping to stabilize prices, even as risks of further damage to Gulf energy infrastructure remain.
Yemen’s Houthi rebels claimed responsibility for attacks on Saudi Aramco sites in Riyadh and the Khurais area, in response to Saudi-led strikes in Yemen. Meanwhile, Saudi Arabia’s internationally recognized government launched a major military campaign to retake areas controlled by the Houthis. Aramco also cut November crude oil prices for Asia to six-year lows, while Brent prices stayed above $100 per barrel due to persistent geopolitical tensions and attacks on commercial vessels in the Gulf.
OPEC+ delayed a review of 2027 oil output quotas due to disruptions caused by the Iran war, which has thrown estimates of future production potential into uncertainty. Additionally, Ukrainian President Volodymyr Zelenskiy announced plans to intensify attacks on Russian oil refineries.