Oil slips as Mideast exports, G7 stockpile ease supply concerns
USO•Oil fell more than 2% as rising Middle Eastern crude exports and a planned G7 release of 100 million barrels from emergency reserves eased supply concerns. Brent was down 1.7% at $98.62 a barrel and U.S. crude fell 2.1% to $87.60.
1. Prices fall on supply outlook
Oil dropped more than 2% on Tuesday as Middle Eastern crude exports increased and the G7 agreed to release 100 million barrels of diesel and crude from emergency reserves. Brent fell $1.70 to $98.62 a barrel, while U.S. West Texas Intermediate declined $1.83 to $87.60.
2. Regional flows increase
Gulf oil flows excluding Iran rose to more than 81% of pre-war levels in September, data showed. Saudi Arabia’s energy minister said oil pumped through the East-West Pipeline reached 5.8 million barrels. Kuwait said it was producing at 75% of pre-war levels, and Saudi Arabia cut its official selling price for Arab Light bound for Asia for November loadings.
3. Security risks persist
An advance by Saudi-backed Yemeni government forces near the Bab el-Mandeb Strait helped ease concerns about supply disruptions, while attacks on airports in Jazan and Najran injured three people and caused limited damage. The conflict between Saudi Arabia and Houthi forces continued to fuel concerns about potential supply disruptions.
