as G7 releases strategic reserves
By Prince Ahenkorah
Oil prices edged lower on Monday as rising crude exports from the Middle East and the release of oil stocks by the Group of Seven (G7) nations boosted global supplies, easing concerns over potential disruptions to Gulf energy infrastructure amid the US-Israeli war on Iran.
Brent crude fell 66 cents, or 0.65%, to $101.59 a barrel, while US West Texas Intermediate (WTI) crude dropped 95 cents, or 1.03%, to $90.12 a barrel.
Brent gave up most of its gains from the previous week, while WTI fell 1.6% after G7 countries agreed on Friday to release 100 million barrels of diesel and crude from emergency reserves.
The G7 also pledged to refrain from imposing energy export restrictions following pressure from US President Donald Trump.
The release of the strategic reserves is expected to add to Middle Eastern crude exports, which rose above pre-war levels on four of the seven days in the final week of September, according to shipping data.
The increase occurred despite attacks on vessels passing through the Strait of Hormuz, a key route for global oil shipments.
Tim Waterer, chief analyst at KCM Trade, said the G7 decision to tap strategic reserves had reduced immediate concerns about supply shortages, while Saudi Arabia’s export volumes appeared to be moving back towards pre-war levels.
However, he noted that the risks of further damage to energy infrastructure across the Gulf region remained.
Despite the decline in oil prices, geopolitical tensions continue to exert pressure on the market.
The Houthis claimed they had launched ballistic missiles and drones at Saudi Aramco facilities in Riyadh and the Khurais area of Saudi Arabia in response to Saudi-led air and missile strikes in Yemen.
On Sunday, Yemen’s Saudi-backed, internationally recognised government announced a major military campaign to recapture areas of the country controlled by the Iran-backed Houthis.
Meanwhile, Saudi Aramco unexpectedly cut its November crude oil prices for Asia to their lowest level in six years.
Brent crude continues to trade above $100 a barrel amid persistent geopolitical tensions and increased attacks on commercial vessels in the Gulf.
Meanwhile, OPEC+ has delayed a review that would determine oil output quotas for its members in 2027.
The delay follows disruptions caused by the Iran war to projects aimed at expanding oil production capacity across the Middle East.
The development has added uncertainty to estimates of future oil production and the amount of crude that could be available to the global market.
In Europe, Ukraine is also expected to intensify its attacks on Russian oil refineries.
Ukrainian President Volodymyr Zelenskiy told Reuters that Ukraine would double down on attacks targeting Russian oil refineries as the war between the two countries continues.
The combination of increased Middle Eastern crude exports and the G7’s release of strategic reserves has eased some immediate supply concerns, contributing to the decline in oil prices.
However, continued attacks on energy infrastructure, disruptions around the Strait of Hormuz and broader geopolitical tensions could keep oil markets volatile in the coming days.