Oil slips as Mideast exports, G7 stockpile ease supply concerns

Oil prices dropped nearly 2% on Tuesday as increased Middle Eastern crude exports and a G7 agreement to release emergency fuel reserves reduced supply worries, according to wire reports. Brent futures fell $1.84, or 1.8%, to $98.48 a barrel, while US West Texas Intermediate (WTI) crude decreased $1.42, or 1.6%, to $88.01 per barrel.

Brent's value is nearing its lowest since September 8, and WTI's lowest since August 31. Analyst John Evans of oil broker PVM stated that the anticipation of more crude flowing has tempered price enthusiasm. According to Vitol CEO, around 12 million barrels of crude and 2 million bpd of refined products exited the Middle East via tankers in the past week.

Saudi Arabia's East-West Pipeline delivered 5.8 million barrels to the Red Sea port of Yanbu, as of Tuesday morning. Despite the price decline, concerns about further Middle East supply disruptions persist, including recent attacks on Saudi Arabian airports in Jazan and Najran that injured three people. The G7 nations pledged on Friday to release 100 million barrels of diesel and crude oil from emergency reserves and agreed not to impose energy export restrictions.