Oil Prices Fall as Middle East Exports Rise, G7 Reserve Release Eases Supply Fears
SINGAPORE — WEB DESK: Oil prices moved lower on Monday as recovering crude exports from the Middle East and plans by Group of Seven nations to release emergency fuel stocks eased immediate concerns over global supplies.
Brent crude futures fell 66 cents, or 0.65%, to $101.59 a barrel, while US West Texas Intermediate crude dropped 95 cents, or 1.03%, to $90.12 a barrel during Asian trading.
The decline came despite persistent geopolitical risks surrounding Gulf energy infrastructure and shipping routes.
Middle Eastern crude exports have shown signs of recovery, rising above pre-war levels on four of the final seven days of September.
The improvement has helped reduce some of the supply anxiety that previously pushed international oil prices sharply higher.
Additional supplies are expected after G7 countries agreed to a coordinated release of 100 million barrels of diesel, crude oil and other emergency reserves.
The release will take place through the International Energy Agency framework, with governments seeking to stabilise global energy markets and ease pressure on consumers and businesses.
G7 countries have also pledged to avoid imposing energy export restrictions on one another.
Despite the additional supply, Brent crude remains above the psychologically important $100-a-barrel level, reflecting continued concern over geopolitical instability and threats to Gulf shipping.
Commercial vessels continue to face security risks around the Strait of Hormuz, one of the world’s most strategically important energy transit routes.
Recent attacks on vessels have increased transportation and insurance costs, meaning some Middle Eastern crude is reaching international markets through more expensive and less efficient routes.
Tensions have also intensified in Yemen.
The Houthis said they launched ballistic missiles and drones towards Saudi Aramco facilities in Riyadh and the Khurais area following Saudi-led strikes in Yemen. Saudi Arabia had not confirmed damage from those attacks at the time of the latest market update.
Meanwhile, Yemen’s internationally recognised government has announced a major campaign aimed at retaking Houthi-controlled territory, adding another source of uncertainty for regional energy markets.
OPEC+ has also delayed a review of production capacity that would help determine members’ 2027 output quotas after the conflict disrupted expansion projects across the Middle East.
Oil traders are now balancing improving physical supply and emergency stock releases against the continuing possibility of further attacks on energy infrastructure and shipping.
That tension is likely to keep crude markets volatile even as recovering exports provide some short-term relief.
