Oil prices slipped on Monday as the Group of Seven nations released 100 million barrels of oil from emergency reserves, adding to rising crude exports from the Middle East. Brent crude futures fell 66 cents, or 0.65%, to $101.59 a barrel at 0240 GMT, while US West Texas Intermediate crude dropped 95 cents, or 1.03%, to $90.12 a barrel.
The G7’s decision came after pressure from US President Donald Trump, who urged the bloc to ease supply concerns amid escalating tensions in the Gulf. The release includes both diesel and crude stocks and followed an agreement on Friday to refrain from imposing energy export restrictions.
Shipping data released on Monday showed Middle Eastern crude exports climbed above pre-war levels on four of the last seven days of September. This increase occurred despite ongoing attacks on vessels transiting the Strait of Hormuz, a critical chokepoint for global oil shipments.
Tim Waterer, chief analyst at KCM Trade, said the G7’s move “is taking some of the immediate supply anxiety out of the price,” while Saudi export volumes appear to be returning toward pre-war levels. He added that although these barrels are moving “at higher cost and via less efficient routes,” the combination has been enough to suppress prices for now.
Concerns remain about the risk of further damage to energy infrastructure in the Gulf due to the ongoing US-Israeli conflict with Iran. The Houthis, a Yemeni armed group, claimed to have launched ballistic missiles and drones at Saudi Aramco facilities in Riyadh and the Khurais area on Monday. These strikes were said to be retaliation for 50 Saudi-led air and missile attacks in Yemen over the previous 12 hours. Saudi Arabia has not confirmed the attacks.
Meanwhile, Yemen’s internationally recognised government, backed by Saudi Arabia, announced on Sunday a major military campaign aimed at recapturing all territory held by the Iran-aligned Houthis. In the same period, Saudi Aramco unexpectedly cut its November crude oil prices for Asia to six-year lows, signalling efforts to maintain market share amid geopolitical uncertainty.
Despite Brent crude prices staying above $100 per barrel, ING analysts noted the persistent geopolitical tensions and the rise in attacks on commercial vessels in the Gulf continue to influence market dynamics.
OPEC+ delayed a scheduled review of its 2027 oil output quotas after the Iran conflict disrupted expansion projects across the Middle East. Two sources close to the matter said this postponement has cast doubt over future production potential estimates.
On another front, Ukrainian President Volodymyr Zelenskiy told Reuters on Saturday that Ukraine plans to intensify attacks on Russian oil refineries, adding a new dimension to global oil security concerns.
The interplay of strategic reserve releases, rising Middle Eastern exports, and ongoing regional hostilities has unsettled oil markets. The G7’s intervention eased immediate supply fears, but the underlying instability in the Gulf and delayed OPEC+ decisions continue to weigh on prices.
According to Joy Online.
