Oil prices fell on Monday as rising crude exports from the Middle East and a planned release of emergency oil stocks by G7 countries eased concerns over supply shortages.
Brent crude futures declined 66 cents, or 0.65%, to $101.59 a barrel, while US West Texas Intermediate crude dropped 95 cents, or 1.03%, to $90.12 a barrel.
The decline came after G7 nations agreed to release 100 million barrels of crude and diesel from strategic reserves. The move is expected to provide additional supplies to the global market and reduce immediate pressure on oil prices.
Middle Eastern crude exports also increased despite continued attacks on commercial vessels in the Strait of Hormuz. Shipping data showed that regional exports exceeded pre-war levels on four days during the final week of September.
Analysts said the return of higher Saudi oil exports was also helping calm supply concerns, although transporting crude has become more expensive and less efficient because of security risks in the region.
However, geopolitical tensions continue to limit any major decline in prices. The Houthis claimed they had targeted Saudi Aramco facilities in Riyadh and the Khurais area with missiles and drones. Saudi authorities have not confirmed the claims.
Meanwhile, Yemen’s internationally recognised government announced a major military campaign aimed at retaking areas controlled by the Iran-backed Houthis.
Saudi Aramco has also unexpectedly reduced its November crude prices for Asian buyers to their lowest level in six years.
Analysts at ING said oil prices were likely to remain above $100 a barrel because of continued tensions and increasing attacks on commercial vessels in the Gulf.
OPEC+ has also postponed a review of its 2027 production quotas. The Iran war has disrupted projects aimed at expanding oil production capacity across the Middle East, creating uncertainty over future supply levels.
