Oil Prices Dip as G7 Releases Supplies and Middle East Tensions Persist

Oil prices dipped on Monday as crude exports from the Middle East increased and the G7 nations announced plans to release additional supplies. Brent crude futures fell 43 cents, or 0.4%, to $101.82 a barrel, while US West Texas Intermediate crude dropped $1.50, or 1.7%, to $89.61. The decline was limited by ongoing concerns over disruptions tied to the US-Israeli conflict with Iran.

Analysts noted that while the G7's plan to release 100 million barrels of diesel and crude over the next four months may provide short-term relief, it does little to address structural constraints in refined products. ICE gasoil futures rose about 2% to $1,377.25 a metric ton, reflecting persistent supply tightness.

Tensions in the Middle East continued to escalate, with the Houthis claiming attacks on Saudi Aramco sites in Riyadh and Khurais. Meanwhile, Saudi CEO Amin Nasser warned that crude and refined fuel supplies will remain stretched, and refilling global stockpiles could take two years. OPEC+ also delayed a review of 2027 oil output quotas due to the Iran war's impact on production expansion projects.

Adding to supply concerns, Ukrainian President Volodymyr Zelenskiy stated that Ukraine will continue targeting Russian oil refineries. Meanwhile, Aramco cut November crude oil prices for Asia to six-year lows, potentially signaling further market volatility.