Oil Prices Steady Amid Middle East Export Gains and Supply Risks
Oil prices held steady on Tuesday, recovering from earlier losses as markets weighed a mix of supply risks and export gains. Brent futures dipped by 29 cents, or 0.3%, to $100.03 per barrel, while US West Texas Intermediate (WTI) crude rose by 16 cents, or 0.2%, to $89.59. Analyst John Evans from oil broker PVM noted that the global crude benchmark, Brent, has been hovering around $100 per barrel as factors driving prices higher have weakened for now.
Increased crude exports from the Middle East contributed to the steadying of prices. Around 12 million barrels per day of crude oil and 2 million bpd of refined products have left the region on tankers in the last seven to 10 days, according to the CEO of commodity trading giant Vitol. Saudi Energy Minister Prince Abdulaziz bin Salman also reported that oil pumped through the East-West Pipeline had reached 5.8 million barrels as of Tuesday morning.
Despite these gains, supply concerns persisted due to ongoing attacks by the Iran-backed Houthis in Yemen. Saudi Arabia's airports in Jazan and Najran were targeted, injuring three people and causing limited damage. The Saudi-led coalition intercepted a ballistic missile launched by the Houthis, further escalating tensions. These conflicts have raised the possibility of further Middle East supply disruptions, limiting oil price declines.
The International Energy Agency is set to meet next week to finalize details of a diesel stock release as confusion grows over how many barrels Europe and the US plan to make available. The Group of Seven major economies agreed to release 100 million barrels of diesel and crude oil from emergency reserves but did not specify the breakdown or participating countries. The US Energy Information Administration projected that world petroleum production would drop from 106.3 million bpd in 2025 to 101.1 million bpd in 2026, with demand also declining.