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

Oil prices declined on Monday as Middle Eastern crude exports rebounded and G7 nations announced plans to release emergency reserves. Brent crude futures fell $1.93 (1.89%) to settle at $100.32 a barrel, while US West Texas Intermediate crude dropped $1.68 (1.84%) to $89.43.

Shipping data revealed that Middle Eastern crude exports exceeded pre-war levels on several days in late September, despite ongoing security concerns in the Strait of Hormuz. The G7 countries agreed to release 100 million barrels of crude and diesel from emergency stockpiles, following pressure from US President Donald Trump, which added to supply hopes.

However, analysts warn that global supplies remain tight, with geopolitical risks persisting due to fighting in Yemen and threats to energy infrastructure. Saudi Aramco CEO Amin Nasser cautioned that fuel supplies are stretched and that refilling global stockpiles could take up to two years. The US Strategic Petroleum Reserve inventories have dropped to 283 million barrels, the lowest level since October 1982.

In response to market uncertainties, OPEC+ delayed its review of 2027 output quotas, while Saudi Aramco cut November crude prices for Asian buyers to six-year lows.