Oil Prices Swing as G7 Releases Reserves and Middle East Exports Rise
Oil prices swung between gains and losses on Monday as Middle Eastern crude exports rebounded and the G7 nations pledged to tap into emergency reserves. Brent crude futures climbed 28 cents to $102.53 per barrel, while US West Texas Intermediate (WTI) crude fell 97 cents to $90.14. The volatile trading followed a G7 agreement to release 100 million barrels of diesel and crude oil, reversing some of the prior week's losses.
The G7's move, combined with rising Middle Eastern exports exceeding pre-war levels, aims to ease supply concerns. However, Saudi Aramco CEO Amin Nasser warned that global oil and refined fuel supplies will remain tight, with inventories potentially taking two years to recover. Meanwhile, ICE gasoil futures surged over 4% to $1,409 per metric ton.
Geopolitical tensions added to the uncertainty. The Houthis claimed attacks on Saudi Aramco facilities in retaliation for Saudi-led strikes in Yemen, though Saudi Arabia has not confirmed the reports. Separately, Yemeni government forces targeted Houthi positions near the strategic Bab al-Mandab Strait. OPEC+ postponed a review of 2027 production quotas due to disruptions caused by the war with Iran, while Saudi Aramco slashed November crude prices for Asian buyers to six-year lows.
Ukrainian President Volodymyr Zelenskyy indicated that attacks on Russian oil refineries would continue, further pressuring refined petroleum product supplies. The complex interplay of geopolitical risks, supply adjustments, and market volatility continues to shape oil prices.