Oil slips as Middle East exports rise and G7 releases reserves
Oil prices slipped on Monday as rising Middle East crude exports eased supply concerns, with the G7's planned release from emergency reserves adding further pressure. Brent crude futures fell 66 cents, or 0.65%, to $101.59 a barrel at 0740 PKT, while US West Texas Intermediate fell 95 cents, or 1.03%, to $90.12.
Brent had surrendered most of its gains from the previous week, and WTI ended last week 1.6% lower. G7 countries agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves, and pledged to avoid energy export restrictions after pressure from US President Donald Trump.
The planned release will add to Middle Eastern supplies. Shipping data showed regional exports exceeded pre-war levels on four of seven days during the final week of September, despite attacks on vessels travelling through the Strait of Hormuz. Tim Waterer, chief analyst at KCM Trade, said the G7 decision reduced immediate supply concerns and that Saudi export volumes appeared to be moving toward pre-war levels, though those barrels still face higher costs and less efficient transport routes.
Prices remain above $100 a barrel because geopolitical tensions continue across the region. ING analysts said attacks on commercial vessels in the Gulf have also supported prices, and that the risk of further damage to Gulf energy infrastructure remains a key concern for the market.
The Houthis claimed they launched ballistic missiles and drones against Saudi Aramco sites, saying the targets included facilities in Riyadh and the Khurais area and linking the attacks to Saudi-led strikes in Yemen. Saudi Arabia did not confirm the reported attacks. Yemen's Saudi-backed government announced a major campaign to retake areas controlled by the Iran-backed Houthis. Aramco unexpectedly cut November crude prices for Asia to six-year lows, and OPEC+ delayed a review of 2027 output quotas after the Iran war disrupted regional capacity expansion plans.
