Oil prices declined on Tuesday as investors assessed data showing higher crude exports from the Gulf alongside a Group of Seven commitment to release oil and diesel from emergency reserves.
At 04:12 ET, benchmark Brent crude futures were down 0.2% at $100.17 a barrel, while U.S. West Texas Intermediate crude futures fell 0.8% to $88.67 a barrel.
The moves followed data indicating that Gulf crude exports exceeded levels recorded before the start of the Iran war during part of September. The G7’s commitment to release emergency reserves also provided a potential additional source of supply.
Gulf Crude Exports Reach 18.3 Million Barrels Per Day
Gulf oil exports exceeded pre-war levels for 14 days during September, according to Kpler shipping data 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 continued to leave the Gulf despite risks affecting tankers and other commercial vessels. According to the supplied material, Iran largely closed the Strait of Hormuz following the outbreak of the war, affecting a route that previously handled approximately one-fifth of global oil and liquefied natural gas flows.
The conflict has also affected other parts of the region, including Yemen and the Bab el-Mandeb Strait.
ING Says Regional Oil Flows Remain at Risk
Reports on Monday indicated that Saudi Arabia’s East-West Pipeline had again been targeted, although its operations were not disrupted.
ING analysts said the incident was a “reminder that flows remain at risk.”
Separately, The Wall Street Journal, citing Kpler data, reported that crude exporters had increased shipments through alternative routes and logistical adjustments.
However, shipments of refined petroleum products such as gasoline and diesel remained lower, partly because of damage to regional refineries, according to the report. The supplied material said this had contributed to tighter supplies and higher global prices for refined fuels.
G7 Pledges Release of 100 Million Barrels
G7 countries have pledged to release 100 million barrels of diesel and crude from emergency reserves.
The countries also agreed to refrain from imposing restrictions on energy exports, according to the supplied material, following pressure from U.S. President Donald Trump.
The planned reserve release could add supply to the market, although its eventual effect on crude and refined-product prices will depend on factors including the timing and composition of the releases and broader market conditions.
Energy prices also remain relevant to monetary policy because of their potential effect on inflation. According to the supplied material, central banks are monitoring fuel costs as they assess interest-rate decisions for the remainder of the year.