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

Oil prices dropped on Monday as increased crude exports from the Middle East and the G7’s decision to release emergency oil stocks boosted global supplies. Brent crude futures fell 72 cents, or 0.71%, to $101.59 a barrel, while US West Texas Intermediate crude declined $1.05, or 1.2%, to $90.05 a barrel. The price declines came despite ongoing geopolitical tensions in the Gulf region, which have raised concerns about further damage to oil infrastructure.

The G7 countries agreed on Friday to release 100 million barrels of diesel and crude from their strategic reserves, a move aimed at easing supply anxieties. This release follows a rise in Middle Eastern crude exports, which surpassed pre-war levels in four of the seven days leading up to the end of September, according to shipping data. Despite attacks on vessels in the Strait of Hormuz, the increased supply has helped temper oil prices.

Tim Waterer, chief analyst at KCM Trade, noted that the G7’s decision and the resumption of Saudi export volumes have reduced immediate supply concerns. However, he cautioned that risks to Gulf energy infrastructure remain. The Houthi rebels in Yemen claimed to have launched ballistic missiles and drones at Saudi Aramco sites, though there was no confirmation from Saudi Arabia. Meanwhile, Aramco unexpectedly cut November crude oil prices for Asia to six-year lows.

Geopolitical tensions continue to influence oil prices, with Brent staying above $100 per barrel due to persistent conflicts in the Gulf. OPEC+ delayed a review of 2027 oil output quotas because the Iran war has disrupted expansion projects, creating uncertainty about future production potential. In Europe, Ukraine announced plans to intensify attacks on Russian oil refineries, further complicating the global energy landscape.