Oil Prices Drop as G7 Releases Emergency Reserves and Middle East Exports Rise

Oil prices dipped at the start of the trading week due to rising crude exports from the Middle East and a G7 decision to release oil from emergency reserves. The moves have eased some of the recent concerns over global supply shortages. However, geopolitical tensions in the Gulf region continue to create uncertainty and could keep oil markets volatile.

Brent crude futures dropped by 35 cents, or 0.34%, to $101.90 per barrel. US West Texas Intermediate (WTI) crude fell by 62 cents, or 0.68%, to $90.49 per barrel. These declines erased most of Brent’s gains from the previous week, while WTI saw a 1.6% weekly drop.

The G7’s decision to release 100 million barrels of crude oil and diesel from strategic reserves is expected to increase global supplies and ease near-term pressure on oil prices. Analysts noted that the additional oil has helped reduce immediate supply concerns. However, ongoing risks to energy infrastructure in the Gulf due to the war involving Iran could still impact oil price stability in the coming days.