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

Oil prices declined on Monday amid rising crude exports from the Middle East and the G7's decision to release emergency oil stocks. Brent crude futures dropped by 72 cents, or 0.71%, to $101.59 a barrel, while US West Texas Intermediate crude fell by $1.05, or 1.2%, to $90.05 a barrel. The G7's agreement to release 100 million barrels of diesel and crude, along with Middle Eastern exports returning to pre-war levels, eased supply concerns despite ongoing geopolitical tensions.

Analysts noted that the G7's strategic reserve release and the resurgence of Saudi export volumes are temporarily subduing oil prices. Tim Waterer, chief analyst at KCM Trade, highlighted that these factors are offsetting immediate supply anxiety, even though risks of further damage to Gulf energy infrastructure remain. Meanwhile, ICE gasoil futures surged by more than 2% to $1,390.25 a barrel.

The Houthi group claimed to have launched ballistic missiles and drones at Saudi Aramco sites in Riyadh and Khurais, in retaliation for Saudi-led strikes in Yemen. Saudi-backed forces in Yemen announced a major military campaign to retake Houthi-controlled areas. Additionally, Aramco slashed November crude oil prices for Asia to six-year lows. Brent prices remained above $100 per barrel due to persistent geopolitical tensions and increased attacks on vessels in the Gulf.

OPEC+ postponed a review of 2027 oil output quotas due to disruptions caused by the Iran war, creating uncertainty about future production potential. In Europe, Ukrainian President Volodymyr Zelenskiy indicated that Ukraine would intensify attacks on Russian oil refineries.