Oil slips as Middle East exports, G7 stockpile ease supply concerns
USO•Oil prices fell as resilient Middle Eastern crude exports and a G7 emergency stockpile release eased supply concerns, while regional security risks limited further losses. Brent fell 0.8% to $99.49 a barrel and U.S. WTI declined 1.1% to $88.43.
1. Prices fall
Brent crude futures were down 83 cents, or 0.8%, at $99.49 a barrel, while U.S. West Texas Intermediate futures fell $1, or 1.1%, to $88.43. A market analyst said regional crude exports exceeded pre-war levels on several days in late September, but warned that attacks on tankers around the Strait of Hormuz kept shipping costs, insurance and security risks elevated.
2. Supply outlook
Gulf oil flows excluding Iran rose to more than 81% of pre-war levels in September, led by a recovery in Saudi exports. Iranian exports fell to zero due to a U.S. blockade. Kuwait said it was producing at 75% of pre-war levels, while Saudi Arabia cut its official selling price for Arab Light to Asia for November loadings.
3. Reserves and risks
G7 countries agreed to release 100 million barrels of diesel and crude from emergency reserves and pledged to avoid energy export restrictions. The conflict involving Saudi Arabia and Iran-backed Houthi forces continued to raise concerns about supply disruptions. Houthi claims that they attacked locations in Saudi Arabia, including an Aramco refinery, could not be immediately verified.
