Oil Prices Dip as Middle East Exports Rise and G7 Releases Stocks
Oil prices dipped on Monday as rising crude exports from the Middle East and a strategic release of oil stocks by the Group of Seven (G7) nations alleviated some supply concerns. Brent crude futures fell 66 cents, or 0.65%, to $101.59 a barrel, while US West Texas Intermediate (WTI) crude dropped 95 cents, or 1.03%, to $90.12 a barrel.
The decline came despite ongoing tensions in the Gulf, where attacks on oil infrastructure and vessels have raised fears of supply disruptions. The G7's decision to release 100 million barrels of diesel and crude from emergency reserves, along with pledges to avoid energy export restrictions, contributed to the price drop. Middle East crude exports also rose above pre-war levels in the final week of September, according to shipping data.
Analysts noted that the G7's move and the resumption of higher export volumes from the Middle East have temporarily eased supply anxieties. Tim Waterer, chief analyst at KCM Trade, remarked that the combination of these factors is subduing prices, even though risks of further damage to Gulf energy infrastructure persist.
Geopolitical tensions continue to influence oil markets, with Brent prices staying above $100 per barrel due to persistent conflicts and attacks in the Gulf. Meanwhile, OPEC+ delayed a review of 2027 oil output quotas amid uncertainty caused by the Iran war. In Europe, Ukraine's President Volodymyr Zelenskiy announced plans to intensify attacks on Russian oil refineries.