Ammon News - Oil prices fell on Tuesday as resilient Middle Eastern crude exports and a G7 emergency stockpile release eased supply concerns, ​though lingering security risks in the region capped further losses.

Brent crude futures were down ‌83 cents, or 0.8%, at $99.49 a barrel at around 0650 GMT, while US West Texas Intermediate crude futures fell $1, or 1.1%, to $88.43 a barrel.

"Shipping data shows regional crude exports actually exceeded pre-war levels on several days in late September. ​Alternative routes and logistical adjustments have somehow allowed producers to keep barrels moving despite the ​disruption around Hormuz," said Priyanka Sachdeva, head of market insights at Phillip Nova.

"However, ⁠calling this a full normalisation of supply doesn't look justified quite yet ... There have been renewed attacks ​on tankers around the Strait of Hormuz, and the number of incidents has increased in recent days. ​This means that while barrels are still moving, the cost, insurance, routing, and security risks of moving them remain elevated.

Gulf oil flows excluding Iran surged to over 81% of pre-war levels in September, data showed, led by a recovery in ​Saudi exports despite attacks on the kingdom's oil infrastructure and escalating Iranian attacks on regional shipping, while ​Iranian exports fell to zero due to a US blockade.

While the market remains nervous about potential supply disruptions from ‌the ⁠region, Gulf oil producers continue to adapt to the region's situation, ING analysts said in a Tuesday note.

"Kuwait said that it is producing at 75% of pre-war levels, while the Saudis also cut the official selling price of their Arab Light into Asia for November loadings, a sign of an improving supply ​picture," they said.

Further easing supply ​concerns, 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.


Reuters