Oil slips on rising Mideast crude exports, G7 stocks release
USO•Oil prices fell about $2 on Monday as Middle Eastern crude exports increased and G7 countries pledged to release 100 million barrels from emergency reserves. Brent settled at $100.32 a barrel and U.S. WTI at $89.43.
1. Prices settle lower
Brent crude futures fell $1.93, or 1.89%, to settle at $100.32 a barrel, while U.S. West Texas Intermediate lost $1.68, or 1.84%, to $89.43. Middle Eastern crude exports rose above pre-war levels on four of the seven days in the final week of September, shipping data showed.
2. G7 pledge and reserves
G7 countries agreed to release 100 million barrels of diesel and crude from emergency reserves and pledged to refrain from energy export restrictions. Raymond James analyst Pavel Molchanov said the market remained sceptical because it was unclear how much of the pledged oil would come from the 400 million-barrel release announced in March; IEA Executive Director Fatih Birol said members had released about two-thirds of that amount.
3. Supply risks persist
Saudi Aramco CEO Amin Nasser expected crude and refined fuel supplies to remain stretched and said refilling global stockpiles after emergency withdrawals might take two years. U.S. Strategic Petroleum Reserve inventories fell to 283 million barrels, their lowest level since October 1982. OPEC+ postponed a review of 2027 output quotas, while Aramco cut November crude prices for Asia to six-year lows.
