Oil prices drop as G7 stock release and Middle East exports rise

Oil prices dipped on Monday as rising exports from the Middle East and plans by the Group of Seven (G7) to release emergency oil stocks boosted global supply. Brent crude futures dropped by 66 cents, or 0.65%, to $101.59 a barrel, while US West Texas Intermediate (WTI) crude fell 95 cents, or 1.03%, to $90.12 a barrel. The declines came after G7 countries agreed to release 100 million barrels of diesel and crude from emergency reserves, a move aimed at easing market tensions.

The G7’s decision offset concerns over potential disruptions to Gulf oil infrastructure due to the ongoing US-Israeli conflict with Iran. Despite attacks on vessels transiting the Strait of Hormuz, Middle Eastern crude exports exceeded pre-war levels on four of the seven days in late September, according to shipping data. Meanwhile, the Houthis claimed to have launched ballistic missiles and drones at Saudi Aramco facilities in response to Saudi-led strikes in Yemen, though Saudi Arabia did not confirm the attacks.

Aramco unexpectedly cut its November crude oil prices for Asia to six-year lows, adding another layer of uncertainty to the market. ING analysts noted that Brent prices remain above $100 per barrel due to geopolitical tensions and increased attacks on commercial vessels in the Gulf. OPEC+ also postponed a review of its members’ 2027 oil production quotas, citing disruptions caused by the Iran war, which has created uncertainty over future production potential.