Oil prices slip as G7 plans reserve release

Oil prices experienced a decline on Monday due to a surge in Middle Eastern crude exports and a pledge from the Group of Seven nations to release emergency reserves. Brent crude futures dropped by $1.20, or 1.17 percent, to $101.05 per barrel, while West Texas Intermediate crude fell by $1.16, or 1.27 percent, to $89.95 per barrel, according to Reuters.

Middle Eastern crude exports surpassed pre-war levels on four days of the final week in September, despite attacks on vessels passing through the Strait of Hormuz. The increase in exports, combined with the G7's planned release of emergency stocks, contributed to the downward pressure on crude prices. However, the scale of the additional supply remains uncertain, with the International Energy Agency (IEA) Executive Director, Fatih Birol, stating that member countries have already released about two-thirds of the 400-million-barrel volume.

Despite the release, supply concerns persist as fighting continues in parts of the Middle East. OPEC+ postponed a review of its 2027 oil output quotas due to disruptions caused by the ongoing conflict between Saudi Arabia and Iran-backed Houthi forces in Yemen.