Crude oil prices declined on Monday as increased exports from the Middle East eased some supply concerns, while plans by the Group of Seven nations to release emergency fuel stocks added further pressure to the market.
Brent crude fell by $1.20, or 1.17 per cent, to $101.05 a barrel, while US West Texas Intermediate dropped $1.16, or 1.27 per cent, to $89.95 a barrel, according to Reuters.
The decline followed a rise in Middle Eastern crude shipments, with export volumes exceeding pre-war levels on four days during the final week of September despite attacks on vessels operating around the Strait of Hormuz.
Market sentiment was also affected by the G7’s decision to release about 100 million barrels of crude and diesel from emergency reserves. The group also agreed not to impose energy export restrictions.
However, uncertainty remains over how much additional supply will actually reach the market and how quickly it will be released.
International Energy Agency Executive Director Fatih Birol previously said member countries had already supplied about two-thirds of a planned 400-million-barrel emergency release.
Despite the expected increase in available supplies, concerns over global energy security remain because of continuing conflict in the Middle East.
Saudi Aramco Chief Executive Officer Amin Nasser warned that crude and refined fuel markets could remain tight. He also said restoring emergency stockpiles after the recent withdrawals could take as long as two years.
The United States Strategic Petroleum Reserve has fallen to about 283 million barrels, its lowest level since October 1982, according to US Department of Energy data.
Supply risks are also being influenced by renewed fighting involving Saudi Arabia and Iran-backed Houthi forces in Yemen. Yemeni government troops reportedly attacked Houthi positions near the Bab el-Mandeb Strait on Monday as part of efforts to reclaim territory.
Meanwhile, the Organisation of the Petroleum Exporting Countries and its allies postponed a review of oil production quotas for 2027. The delay follows disruptions to projects intended to expand production capacity in the Middle East as a result of the conflict involving Iran.
