Oil Prices Dip as G7 Releases Reserves and Middle East Exports Rise
Oil prices fell on Monday due to rising crude exports from the Middle East and the Group of Seven's (G7) decision to release 100 million barrels of diesel and crude from emergency reserves. Brent crude futures dropped 66 cents to $101.59 per barrel, while US West Texas Intermediate (WTI) crude declined 95 cents to $90.12 per barrel. The G7's move, announced on Friday, aims to ease supply concerns amid the ongoing US-Israeli conflict with Iran.
Despite attacks on vessels in the Strait of Hormuz, Middle Eastern crude exports surpassed pre-war levels in four of the last seven days of September, according to shipping data. Analysts noted that the G7's reserve release and the return of Saudi export volumes to near pre-war levels are helping to stabilize oil prices, even though geopolitical risks remain.
The Houthis claimed to have launched ballistic missiles and drones at Saudi Aramco sites in Riyadh and the Khurais area, though Saudi Arabia has not confirmed these attacks. Meanwhile, Saudi Arabia's internationally recognized government announced a major military campaign to retake areas controlled by the Houthis. Additionally, Aramco unexpectedly cut November crude oil prices for Asia to six-year lows.
Brent prices remain above $100 per barrel due to persistent geopolitical tensions and increased attacks on commercial vessels in the Gulf. OPEC+ postponed a review of 2027 oil output quotas because the Iran war has disrupted capacity expansion projects. In Europe, Ukrainian President Volodymyr Zelenskiy stated that Ukraine will intensify attacks on Russian oil refineries.