Noida, Oct 5 (APAC Media): Oil prices slipped in Asian trading on Monday as rising crude exports from the Middle East and plans by Group of Seven nations to release emergency oil reserves eased concerns over near-term supply shortages, although renewed geopolitical tensions kept a floor under prices.
Brent crude futures for December delivery fell 0.62% to $101.63 a barrel, while U.S. West Texas Intermediate (WTI) crude futures for November declined 1.2% to $90.11 a barrel as of 12:15 p.m. IST on Monday.
The G7 agreed on Friday to release 100 million barrels of crude and refined fuel products from emergency reserves, with a significant portion of diesel expected to reach markets within 20 days. The decision aims to cushion energy markets against disruptions linked to the war involving Iran.
“The release of emergency reserves is intended to provide additional supply and help stabilise energy markets,” G7 officials said following the agreement.
Meanwhile, Middle Eastern crude exports have shown signs of recovery. Data from oil analytics firm Kpler, cited in reports, showed regional exports exceeded pre-war levels on four days during the final week of September.
Middle Eastern crude exports rose to between 19.5 million and 22.5 million barrels per day on Sept. 24 and on several days between Sept. 27 and 29. The seven-day average reached 18.5 million bpd on Oct. 1, exceeding the pre-war average of around 18 million bpd.
The increase has been supported by stronger flows through the Strait of Hormuz and alternative export routes, although security risks continue to threaten shipping in the region.
The supply outlook remains clouded by fresh attacks. Yemen’s Iran-aligned Houthi movement said it had launched missiles and drones at Saudi Aramco facilities in Riyadh and the Khurais area, describing the strikes as a response to Saudi-led military operations in Yemen.
Saudi authorities have not confirmed the reported attacks.
Saudi Aramco also unexpectedly lowered its November official selling price for Arab Light crude to Asia by $3 a barrel, setting it at a $5 discount to the Oman-Dubai average. The cut represents the widest discount since June 2020 and signals efforts to protect market share amid higher freight costs.
OPEC+ added another element of stability by agreeing to leave its November production targets unchanged. The group said its next meeting would take place on Nov. 1.
“The market remains highly sensitive to both supply disruptions and signs of improving exports,” analysts said, reflecting the competing pressures shaping crude prices.
–ENDS–
Disclaimer: This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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