Oil prices fell during Asian trading on Monday as Middle East crude exports recovered and G7 countries prepared to release emergency oil reserves, reducing some immediate concerns about global supply.
At 03:00 ET (07:00 GMT), December Brent crude futures declined 0.6% to $101.62 a barrel, while November West Texas Intermediate futures fell 1% to $90.19.
The declines were limited by continued geopolitical risks in the Middle East, where attacks and military activity remain a potential source of disruption to energy supplies and shipping.
G7 countries agreed on Friday to release 100 million barrels of crude oil and fuel products from emergency reserves. A significant portion of the diesel included in the plan is expected to be released within 20 days.
The measure is intended to address supply disruptions associated with the conflict involving Iran.
ING analysts said: “This action reflects the growing tightness in the diesel market as we move closer towards the Northern Hemisphere winter and the threat of a US diesel export ban. The G7 move has President Trump ruling out the possibility of an export ban.”
Crude Flows Rise Above Pre-War Average
Middle East crude exports exceeded pre-war levels on four days during the final week of September, according to reports citing Kpler data.
Daily exports ranged between 19.5 million and 22.5 million barrels on September 24 and from September 27 through September 29.
By October 1, the seven-day moving average stood at 18.5 million barrels per day, above the pre-war average of 18 million barrels per day.
Higher flows through the Strait of Hormuz and the use of alternative export routes have contributed to the recovery, although shipping risks remain.
Saudi Aramco Cuts November Arab Light Price
Yemen’s Iran-aligned Houthi forces said they launched missiles and drones at Saudi Aramco facilities in Riyadh and Khurais in response to Saudi-led strikes in Yemen.
Saudi Arabia has not confirmed the reported attacks.
Separately, Saudi Aramco (TADAWUL:2222) cut the November official selling price for Arab Light crude to Asian customers by $3 a barrel.
The company priced the grade at a $5-a-barrel discount to the Oman-Dubai average, its widest discount since June 2020, as it seeks to maintain market share amid increased freight costs.
OPEC+ also agreed to keep its November production targets unchanged. The group is scheduled to hold its next meeting on November 1.
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