Oil prices fell on Monday as Middle East crude exports increased and G7 nations pledged to release emergency reserves. However the ongoing fears over the US-Iran war and regional conflict kept market losses in check.
Brent crude futures dropped $1.93 (1.89%) to settle at $100.32 a barrel while US West Texas Intermediate crude fell $1.68 (1.84%) to $89.43.
Shipping data showed Middle Eastern crude exports surpassed pre-war levels on several days in late September despite security risks in the Strait of Hormuz. Adding to supply hopes the G7 countries agreed to release 100 million barrels of crude and diesel from emergency stockpiles following pressure from US President Donald Trump.
Despite these measures, analysts warn global supplies remain tight. Ongoing fighting in Yemen and persistent threats to energy infrastructure keep geopolitical risks high. Saudi Aramco CEO Amin Nasser cautioned that fuel supplies remain stretched and refilling global stockpiles could take up to two years. Meanwhile the US Strategic Petroleum Reserve inventories dropped to 283 million barrels their lowest level since October 1982.
In response to market uncertainties the OPEC+ delayed its review of 2027 output quotas while Saudi Aramco cut November crude prices for Asian buyers to six-year lows.
