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

Oil prices declined on Monday as Middle East crude exports increased and the Group of Seven (G7) nations announced a release of oil stocks. Brent crude futures dropped by 72 cents, or 0.71 percent, to US$101.59 per barrel, while US West Texas Intermediate (WTI) crude fell by US$1.05, or 1.2 percent, to US$90.05 per barrel.

The G7's decision on Friday to release 100 million barrels of diesel and crude from emergency reserves contributed to the price drop. This move, along with rising Middle East crude exports, eased supply concerns despite ongoing geopolitical tensions in the Gulf region.

Tim Waterer, chief analyst at KCM Trade, noted that the G7's decision and the return of Saudi export volumes to pre-war levels are subduing prices. However, he cautioned that risks of further damage to energy infrastructure remain.

The Houthi group claimed attacks on Saudi Aramco sites in Riyadh and Khurais, though these reports were not confirmed by Saudi Arabia. Meanwhile, Ukraine's President Volodymyr Zelenskiy stated that Ukraine will intensify attacks on Russian oil refineries.

OPEC+ postponed a review of 2027 oil output quotas due to disruptions caused by the Iran war, adding uncertainty to future production estimates. Despite these challenges, Brent prices stayed above US$100 per barrel due to persistent geopolitical tensions and increased attacks on commercial vessels in the Gulf.