Oil prices moved lower in Asian trading on Monday as increased crude exports from the Middle East and plans by Group of Seven countries to release emergency reserves reduced some near-term supply concerns.
At 03:00 ET (07:00 GMT), Brent crude futures for December delivery declined 0.6% to $101.62 a barrel, while November West Texas Intermediate futures fell 1% to $90.19.
Losses remained limited as markets continued to assess geopolitical risks and attacks affecting the Middle East.
The G7 agreed on Friday to release 100 million barrels of crude oil and fuel products from emergency reserves, with a significant portion of the diesel supplies scheduled to be released within 20 days.
The decision comes as governments respond to energy 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.”
Middle East Crude Exports Exceed Pre-War Levels
Middle Eastern crude exports exceeded pre-war levels on four days during the final week of September, according to reports citing data from Kpler.
Exports reached between 19.5 million and 22.5 million barrels per day on September 24 and between September 27 and 29.
The seven-day moving average stood at 18.5 million barrels per day on October 1, compared with a pre-war average of 18 million barrels per day.
The recovery has been supported by increased flows through the Strait of Hormuz and the use of alternative export routes, although risks to shipping in the region remain.
Houthi Claims and Aramco Pricing Remain in Focus
Yemen’s Iran-aligned Houthi forces said they had launched missiles and drones targeting Saudi Aramco facilities in Riyadh and the Khurais area in response to Saudi-led strikes in Yemen.
Saudi Arabia has not confirmed the reported attacks.
Saudi Aramco (TADAWUL:2222) separately reduced the November official selling price for Arab Light crude to Asian customers by $3 a barrel, setting it at a $5 discount to the Oman-Dubai average.
The discount is the widest since June 2020. The company made the pricing change as it seeks to maintain market share amid higher freight costs.
OPEC+ also agreed to leave its November production targets unchanged. The group said its next meeting would take place on November 1.