Oil Prices Dip as Middle East Flows Recover and G7 Releases Reserves
Oil prices dipped early Tuesday as crude flows from the Middle East Gulf showed signs of recovery, easing supply concerns. However, persistent security risks in the region limited the decline. International benchmark Brent crude futures for December delivery fell 0.5% to $99.83 per barrel, while US benchmark West Texas Intermediate (WTI) crude futures for November delivery dropped 0.7% to $88.77 per barrel.
Despite threats from Iranian Parliament Speaker Mohammad Bagher Ghalibaf that the Strait of Hormuz would remain closed until certain conditions were met, data from maritime intelligence firm Kpler showed that oil exports continued through the strategic waterway. Between September 1 and 28, the Middle East Gulf region exported an average of 16.5 million barrels per day, matching pre-war levels. Around 60% of these volumes passed through the Strait of Hormuz, while the rest used alternative routes.
The G7's decision to release 100 million barrels of crude and diesel from emergency reserves also contributed to the downward pressure on prices. This coordinated release aims to address surging prices and volatility in global energy markets. Meanwhile, Yemen’s Houthi group claimed responsibility for attacks on Saudi targets, including airports and an oil facility, adding to geopolitical risks in the region.
Talks between the United States and Iran remain stalled, keeping tensions high. The latest attacks on Saudi Arabia highlight the ongoing security challenges in the Gulf, which continue to influence oil price movements.