Oil Prices Rebound as G7 Reserve Release Fails to Ease Geopolitical Risks

Oil prices rebounded on Friday as renewed tensions in the Middle East offset the Group of Seven's (G7) decision to release up to 100 million barrels from emergency reserves.

The Brent crude futures for December delivery rose 0.5 percent to $102.79 a barrel, while U.S. West Texas Intermediate (WTI) for November gained 0.1 percent to $91.24.

The G7's coordinated release of emergency crude stocks aims to ease immediate supply concerns and protect households and businesses from price shocks.

However, the increase in Middle East crude exports, which jumped 36 percent week-on-week to 17.92 million barrels per day, has not removed the geopolitical risk premium from the market.

The United States and Iran remain locked in a confrontation over the security and control of the Strait of Hormuz, through which a significant share of global oil and energy shipments passes.