Oil prices slip as traders weigh strong Mideast exports against Gulf tensions

Oil prices dipped on Tuesday as robust Middle Eastern crude shipments and a G7 emergency reserve release helped alleviate supply worries, although attacks by Yemen’s Houthi rebels on Saudi targets left traders cautious about the potential risks to Gulf supplies. Brent crude futures slipped 4 cents to $100.28 a barrel, while US West Texas Intermediate crude futures declined 11 cents, or 0.1%, to $89.33 a barrel.

Analysts noted that oil prices have remained relatively stable following yesterday's drop, as traders grapple with a slight reduction in supply-side tensions. Saudi exports rose to pre-war levels for four consecutive days in the final week of September, as per shipping data reported on Monday, highlighting the resiliency of regional oil flows despite ongoing attacks on ships in the Strait of Hormuz.

The Middle East's largest oil exporter faced continued threats from the conflict between Saudi Arabia and Iran-backed Houthi forces in Yemen, which spurred concerns over potential disruptions to supply from the region's leading oil producer amid a deadlock in US-Iran negotiations. Despite the uncertainty, the floor supporting prices remains relatively firm due to the G7's decision to release 100 million barrels of diesel and crude from emergency reserves and their pledge to avoid energy export restrictions following pressure from US President Donald Trump.