Oil Prices Dip as G7 Releases Reserves and Middle East Exports Rise
Oil prices edged lower on Monday as rising crude exports from the Middle East and the G7’s decision to release emergency oil reserves added to global supplies. Brent crude futures dropped 35 cents, or 0.34%, to $101.90 a barrel, while US West Texas Intermediate (WTI) crude fell 62 cents, or 0.68%, to $90.49 a barrel.
The G7 nations agreed on Friday to release 100 million barrels of diesel and crude from their strategic reserves, a move that eased some supply concerns. The decision came after pressure from US President Donald Trump, who opposed energy export restrictions. Meanwhile, Middle Eastern crude exports rose above pre-war levels in four of the final week of September, despite attacks on vessels in the Strait of Hormuz.
Analyst Tim Waterer of KCM Trade noted that the G7’s reserve release and the return of Saudi export volumes to pre-war levels are offsetting price gains. However, he cautioned that risks of further damage to Gulf energy infrastructure remain. The Houthis claimed to have launched ballistic missiles and drones at Saudi Aramco sites in Riyadh and Khurais, though Saudi Arabia has not confirmed these attacks.
In other developments, Yemen’s Saudi-backed government announced a major military campaign to retake areas controlled by the Iran-backed Houthis. Additionally, Saudi Aramco cut November crude oil prices for Asia to six-year lows. OPEC+ postponed a review of 2027 oil output quotas due to disruptions caused by the US-Israeli war on Iran. Meanwhile, Ukrainian President Volodymyr Zelenskiy said Ukraine will intensify attacks on Russian oil refineries.