Oil prices dip on rising Middle East exports and G7 stock release
Oil prices dipped on Monday as increased crude exports from the Middle East and the G7's decision to tap into emergency reserves boosted global supplies. Brent crude futures fell 0.65% to $101.59 per barrel, while U.S. West Texas Intermediate crude dropped 1.03% to $90.12 per barrel. The declines came despite ongoing geopolitical tensions and attacks on Gulf oil infrastructure linked to the U.S.-Israeli conflict with Iran.
The G7 countries agreed on Friday to release 100 million barrels of diesel and crude from their emergency reserves, a move that weighed on oil prices. This decision was influenced by pressure from U.S. President Donald Trump, who urged the group to avoid energy export restrictions. The release is expected to further bolster Middle Eastern crude exports, which have already risen above pre-war levels in recent days, according to shipping data.
Despite the price declines, Brent crude has maintained levels above $100 per barrel due to persistent geopolitical risks and a surge in attacks on commercial vessels in the Gulf. Analysts from ING noted that these factors continue to support higher oil prices, even as supply concerns ease slightly.