Oil prices dip as Middle East exports rise and G7 releases reserves

Oil prices declined on Monday as rising crude exports from the Middle East and the G7's decision to release emergency oil stocks added to global supplies. Brent crude futures dropped 35 cents, or 0.34%, to $101.90 a barrel, while US West Texas Intermediate crude fell 62 cents, or 0.68%, to $90.49 a barrel. The G7 countries agreed to release 100 million barrels of diesel and crude, a move that eased some supply concerns despite ongoing tensions in the Gulf region.

The increase in Middle Eastern crude exports, which surpassed pre-war levels in the final week of September, contributed to the downward pressure on prices. Analysts noted that the G7's decision and the resumption of higher export volumes from the Middle East are tempering oil prices, even as risks of further damage to Gulf energy infrastructure persist.

Tensions in the region escalated as the Houthis launched ballistic missiles and drones at Saudi Aramco sites in response to Saudi-led strikes in Yemen. Meanwhile, Yemen's Saudi-backed government announced a major military campaign to recapture areas controlled by the Houthis. Saudi Aramco also unexpectedly cut November crude oil prices for Asia to six-year lows.

OPEC+ postponed a review of 2027 oil output quotas due to disruptions caused by the US-Israeli war on Iran, which has thrown future production estimates into uncertainty. In Europe, Ukrainian President Volodymyr Zelenskiy stated that Ukraine will intensify attacks on Russian oil refineries.