Oil Prices Dip as G7 Reserve Release and Middle East Exports Boost Supply

Oil prices declined on Monday as rising exports from the Middle East and a strategic release of oil reserves by the Group of Seven (G7) nations helped ease supply concerns. Brent crude futures dropped by 35 cents, or 0.34%, to $101.90 per barrel, while US West Texas Intermediate (WTI) crude fell by 62 cents, or 0.68%, to $90.49 per barrel.

The G7's decision to release 100 million barrels of diesel and crude from emergency reserves, announced on Friday, has tempered some of the immediate supply anxiety. This move comes amid growing evidence that Saudi Arabia's crude exports are returning to pre-war levels, despite higher costs and less efficient shipping routes.

Tensions in the Gulf region persist, with the Houthis claiming attacks on Saudi Aramco sites in Riyadh and Khurais. Meanwhile, Saudi-backed forces in Yemen launched a major military campaign to retake areas controlled by the Houthis. Additionally, Aramco has slashed November crude oil prices for Asia to six-year lows.

OPEC+ has delayed a review of 2027 oil output quotas due to disruptions caused by the US-Israeli conflict with Iran, creating uncertainty over future production potential. In Europe, Ukrainian President Volodymyr Zelenskiy announced plans to intensify attacks on Russian oil refineries.