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

Oil prices dipped on Monday as Middle East crude exports rebounded and the Group of Seven (G7) nations agreed to release additional stocks to ease supply concerns. Brent crude futures fell $1.10, or 1.08%, to $101.15 a barrel, while US West Texas Intermediate crude dropped 89 cents, or 0.98%, to $90.22. The G7's decision to release 100 million barrels of diesel and crude from emergency reserves came after pressure from US President Donald Trump, though the exact source of these barrels remains unclear.

Despite the G7's move, analysts noted that the release would only provide short-term relief. Saxo Bank analyst Ole Hansen highlighted that the plan does little to address structural constraints in refined products. Meanwhile, Middle Eastern crude exports surged above pre-war levels in recent days, even as attacks on vessels in the Strait of Hormuz persisted. BP CEO Meg O’Neill announced adjustments to refineries to prioritize diesel production.

Geopolitical tensions continued to underpin oil prices, with ongoing conflicts between Saudi Arabia and the Houthis in Yemen raising concerns over supply disruptions. Saudi Aramco CEO Amin Nasser warned that crude and refined fuel supplies would remain tight, and refilling global stockpiles after emergency withdrawals could take up to two years. The US Strategic Petroleum Reserve dropped to its lowest level since 1982, further tightening supply conditions.

OPEC+ postponed a review of 2027 oil output quotas due to uncertainty caused by the Iran war, which has disrupted expansion projects. Additionally, Aramco cut November crude oil prices for Asia to six-year lows, reflecting the volatile market conditions.