Oil falls as Middle East crude exports rise, G7 to release stocks
NEW DELHI/SINGAPORE: Oil prices fell 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 as the US-Israeli war on Iran drags on.
Brent crude futures fell 72 cents, or 0.71%, to $101.59 a barrel at 0634 GMT, while US West Texas Intermediate crude was at $90.05 a barrel, down $1.05, or 1.2%.
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.
ICE gasoil futures rose more than 2% to $1,390.25 a barrel on Monday.
“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.
