Ammon News -

Oil prices edged lower on Monday as rising ​Middle East crude exports and a release of oil stocks by the Group of Seven ‌nations boosted supplies, offsetting concerns about further damage to Gulf oil infrastructure amid the US-Israeli war on Iran.

Brent crude futures fell 66 cents, or 0.65%, to $101.59 a barrel at 0240 GMT, while US West Texas Intermediate crude was at $90.12 a barrel, down 95 ​cents, or 1.03%.

Brent gave up most of its gains last week while WTI was 1.6% lower ​after G7 countries agreed on Friday to release 100 million barrels of diesel and crude from ⁠emergency reserves and pledged to refrain from energy export restrictions after pressure from US President Donald Trump.

The ​release will add to Middle Eastern crude exports which rose above pre-war levels in four of the seven days of ​the final week of September, shipping data showed on Monday, despite attacks on vessels passing through the Strait of Hormuz.

"The G7 decision to tap strategic reserves is taking some of the immediate supply anxiety out of the price, while there's a growing view ​that Saudi export volumes are moving back toward pre-war levels, even if those barrels are still moving at ​higher cost and via less efficient routes," said Tim Waterer, chief analyst at KCM Trade.

"That combination is enough to subdue prices ‌for now ⁠even though the risks of further damage to energy infrastructure around the Gulf region haven't gone away."


Brent prices continue to stay above $100 per barrel on ​persistent geopolitical tensions ⁠and an increase in attacks on commercial vessels in the Gulf, ING analysts said in a note.

US stocks rallied on Friday, with the Dow gaining half a percent, the S&P 500 adding about three-quarters of a percent and the Nasdaq climbing more than one percent.

Meanwhile, OPEC+ delayed a review that would determine 2027 oil output quotas for its members after the Iran war disrupted projects to expand capacity ⁠across the ​Middle East, throwing estimates of future production potential into uncertainty, said ​two sources close to the matter.

In Europe, Ukraine will double down on attacking Russian oil refineries, Ukrainian President Volodymyr Zelenskiy told Reuters in an ​interview published on Saturday.


Reuters