Oil Prices Dip as G7 Releases Stocks and Middle East Exports Rise

Oil prices declined on Monday as rising crude exports from the Middle East and the G7's decision to release emergency oil stocks added to global supplies. Brent crude futures dropped by 35 cents, or 0.34%, to $101.90 a barrel, while US West Texas Intermediate crude fell by 62 cents, or 0.68%, to $90.49 a barrel. The G7 countries agreed to release 100 million barrels of diesel and crude from their emergency reserves, which contributed to easing supply concerns. This move came after Middle Eastern crude exports surpassed pre-war levels in four of the last seven days of September, despite ongoing attacks in the Strait of Hormuz.

Analysts noted that the G7's decision to tap strategic reserves and the resumption of higher export volumes from Saudi Arabia are easing immediate supply anxieties. However, risks of further damage to energy infrastructure in the Gulf region remain. The Houthis claimed they launched ballistic missiles and drones at Saudi Aramco sites in Riyadh and the Khurais area, though there was no confirmation from Saudi Arabia. Meanwhile, Saudi Arabia's internationally recognized government announced a major military campaign to retake areas controlled by the Houthis.

In other developments, Aramco unexpectedly cut November crude oil prices for Asia to six-year lows. OPEC+ delayed a review of 2027 oil output quotas due to disruptions caused by the US-Israeli war on Iran, which has thrown future production estimates into uncertainty. Additionally, Ukrainian President Volodymyr Zelenskiy revealed plans to intensify attacks on Russian oil refineries.