Crude oil prices moved lower on Tuesday after shipping data showed Gulf exports recovering during September, while G7 countries committed to releasing crude and diesel from emergency stockpiles.
At 04:12 ET, Brent crude futures declined 0.2% to $100.17 a barrel. U.S. West Texas Intermediate futures were down 0.8% at $88.67 a barrel.
The market was assessing signs of higher crude flows from the Middle East despite continuing risks to regional shipping routes. The planned release of G7 emergency reserves also introduced the prospect of additional supply.
Gulf Oil Shipments Exceed Pre-War Levels for 14 Days
Gulf oil exports exceeded levels recorded before the Iran war for 14 days in September, according to Kpler shipping figures cited by Reuters.
The seven-day moving average for crude exports from the region stood at 18.3 million barrels per day on 30 September.
The figures indicated that crude shipments continued despite risks affecting tankers and other commercial vessels. According to the supplied material, Iran largely closed the Strait of Hormuz following the start of the war, affecting a waterway that previously carried approximately one-fifth of global oil and liquefied natural gas flows.
The conflict has subsequently affected other parts of the region, including Yemen and the Bab el-Mandeb Strait.
Saudi Pipeline Incident Highlights Continuing Supply Risks
Reports on Monday said Saudi Arabia’s East-West Pipeline had again been targeted but that operations were not disrupted.
ING analysts described the incident as a “reminder that flows remain at risk.”
The Wall Street Journal separately reported, citing Kpler figures, that crude exporters had been able to increase shipments using alternative routes and logistical adjustments.
Refined-product shipments, including gasoline and diesel, remained more limited, however, partly because of damage to regional refineries, according to the report. The supplied material said reduced availability had contributed to higher global prices for these fuels.
Emergency Reserve Release Adds Potential Supply
G7 countries have pledged to release 100 million barrels of crude and diesel from emergency reserves.
The group has also agreed not to impose energy export restrictions, according to the supplied material, following pressure from U.S. President Donald Trump.
The planned stockpile release would provide additional barrels to the market, although the eventual effect on oil and refined-product prices will depend on the timing and composition of the releases as well as broader supply and demand conditions.
Energy prices are also being monitored by central banks because of their potential contribution to inflation. According to the supplied material, policymakers are considering the trajectory of fuel costs as they assess interest-rate policy for the remainder of the year.
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