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

Oil prices dropped on Monday as higher Middle East crude exports and a planned release of oil stocks by the Group of Seven (G7) nations eased supply concerns. Brent crude futures fell 66 cents, or 0.65%, to $101.59 per barrel, while US West Texas Intermediate (WTI) crude declined by 95 cents, or 1.03%, to $90.12 per barrel.

The G7’s decision to release 100 million barrels of diesel and crude from emergency reserves, announced on Friday, helped offset fears of supply disruptions caused by the ongoing US-Israeli conflict with Iran. Despite attacks on vessels in the Strait of Hormuz, shipping data showed that Middle Eastern crude exports have surpassed pre-war levels in recent days.

Analysts noted that the G7’s move and the return of Saudi export volumes to near pre-war levels have temporarily subdued oil prices. However, risks of further damage to Gulf energy infrastructure remain. The Houthis claimed attacks on Saudi Aramco sites, though these were not confirmed by Saudi authorities. Additionally, Aramco cut November crude oil prices for Asia to six-year lows.

Geopolitical tensions and attacks on commercial vessels in the Gulf continue to support Brent prices above $100 per barrel. Meanwhile, OPEC+ delayed a review of 2027 oil output quotas due to uncertainty caused by the Iran war. In Europe, Ukraine plans to intensify attacks on Russian oil refineries.