Oil Prices Dip as Middle East Exports Rise and G7 Releases Stocks
Oil prices dropped on Monday as rising crude exports from the Middle East and the G7's decision to release emergency oil stocks boosted global supplies. Brent crude fell 66 cents, or 0.65%, to $101.59 a barrel, while US West Texas Intermediate (WTI) crude declined 95 cents, or 1.03%, to $90.12 a barrel.
The G7's agreement to release 100 million barrels of diesel and crude from strategic reserves, along with rising Middle Eastern exports, helped ease supply concerns. Despite attacks on vessels in the Strait of Hormuz, shipping data showed that Middle Eastern crude exports exceeded pre-war levels in four of the seven days ending September 28.
Analysts noted that the G7's move and the return of Saudi export volumes to pre-war levels, albeit at higher costs and via less efficient routes, were enough to subdue oil prices temporarily. However, risks of further damage to Gulf energy infrastructure remain.
Geopolitical tensions persisted, with the Houthis launching ballistic missiles and drones at Saudi Aramco sites in response to Saudi-led strikes in Yemen. Meanwhile, Ukraine's president announced plans to escalate attacks on Russian oil refineries, adding another layer of uncertainty to global oil markets.