Global oil prices slipped on Monday as a recovery in crude exports from the Middle East, coupled with plans by the Group of Seven (G7) countries to release emergency oil reserves, eased some concerns about possible supply shortages.
Brent crude futures fell 66 cents, or 0.65%, to $101.59 a barrel at 0240 GMT, while US West Texas Intermediate (WTI) crude declined 95 cents, or 1.03%, to $90.12 a barrel.
The decline followed the G7’s decision on Friday to release 100 million barrels of crude oil and diesel from strategic emergency reserves. The group also pledged to avoid imposing restrictions on energy exports following pressure from US President Donald Trump.
The planned release is expected to provide additional supplies to the international market at a time when geopolitical tensions continue to threaten oil production and transportation routes in the Middle East.
Middle East exports recover
The easing in prices also came as Middle Eastern crude exports showed signs of recovery.
Shipping data indicated that crude exports rose above pre-war levels on four of the seven days during the final week of September, despite attacks on commercial vessels travelling through the Strait of Hormuz.
Tim Waterer, Chief Analyst at KCM Trade, said the G7’s decision had eased some of the immediate concerns about a potential supply shortage.
He also noted that Saudi Arabia’s export volumes appeared to be moving closer to levels recorded before the conflict.
Mr Waterer, however, cautioned that risks to energy infrastructure across the Gulf remained a major concern for the oil market.
Houthi attacks fuel fresh concerns
Concerns over supply disruptions remain heightened following reported attacks involving Yemen’s Iran-backed Houthi movement.
The Houthis said they had launched ballistic missiles and drones targeting Saudi Aramco facilities in Riyadh and the Khurais area, describing the attacks as a response to Saudi-led air and missile strikes in Yemen.
Saudi Arabia has not confirmed the reported attacks.
Meanwhile, Yemen’s Saudi-backed, internationally recognised government said on Sunday that it was beginning a major military campaign to retake territories controlled by the Houthis.
The developments have added to uncertainty surrounding the security of oil infrastructure and shipping routes in the region.
Saudi Aramco has also unexpectedly reduced its November crude prices for Asian buyers to their lowest level in six years, a move that could signal weaker demand expectations in one of the company’s key markets.
Despite Monday’s decline, Brent crude remains above $100 a barrel. Analysts at ING said persistent geopolitical tensions and increased attacks on commercial vessels in the Gulf continue to provide support for oil prices.
OPEC+ delays 2027 production review
Meanwhile, OPEC+ has postponed a review that was expected to help determine oil production quotas for 2027.
Sources familiar with the matter said the war involving Iran had disrupted projects aimed at expanding oil production capacity across the Middle East, increasing uncertainty over future supply levels.
The delay comes as oil-producing countries assess the potential impact of regional instability on production capacity and investment plans.
Ukraine adds another risk
In Europe, Ukrainian President Volodymyr Zelenskiy told Reuters that Ukraine plans to intensify attacks on Russian oil refineries.
Any significant disruption to Russian refining capacity could further complicate global energy markets, particularly if refined fuel supplies are affected.
The combination of geopolitical tensions in the Middle East, uncertainty over OPEC+ production plans, attacks on energy infrastructure and potential disruptions to Russian refining capacity means the global oil market remains highly sensitive to developments on several fronts.
For now, however, recovering Middle Eastern exports and the planned G7 emergency stock release have provided some relief to supply concerns, contributing to Monday’s decline in crude prices.
Story by Ama Frimpomaa
