SINGAPORE / RankWire.AI / – Oil prices hovered close to $102 a barrel on Monday, following a brief surge above $103 in early trading, with Brent crude futures gaining 5 cents to reach $102.30. Meanwhile, U.S. West Texas Intermediate crude declined by 49 cents, or 0.5%, settling at $90.62. Earlier, both benchmarks had dropped more than 1% amid concerns over increased supply from Middle East exports and ongoing security threats impacting regional energy infrastructure.
In Asian markets, Brent touched $103.06 a barrel, an increase of 81 cents, or 0.79%. WTI advanced by 46 cents, or 0.50%, reaching $91.57. These gains followed a statement from Yemen’s Iran-backed Houthis, claiming they launched ballistic missiles and drones at Saudi Aramco facilities in Riyadh and Khurais. This announcement revived focus on Saudi oil infrastructure after recent attacks disrupted energy facilities and shipping routes across the region.
The G7 nations also took steps to bolster supply by releasing emergency petroleum reserves. They agreed to distribute 100 million barrels of crude, diesel, and other petroleum stocks via the International Energy Agency. The coordinated release is scheduled over four months, with a substantial portion of diesel allocated during the first 20 days. This move comes after months of disruptions affecting crude oil flows, refined fuel supplies, and shipping routes through major Middle East energy corridors.
Middle East crude exports rebound despite ongoing security concerns
Despite persistent security threats along vital shipping routes, Middle East crude exports showed a strong recovery in September. Data from Kpler and Vortexa indicated regional crude shipments averaged approximately 18.3 million barrels per day for the month. On several days, exports reached about 18.6 million barrels daily, surpassing pre-conflict levels. Saudi Arabia increased its shipments via Gulf and Red Sea routes, while Iraqi tanker activity also grew in September as regional crude movements picked up.
The Strait of Hormuz remains crucial to global energy trade, handling nearly 20% of worldwide crude oil and liquefied natural gas shipments. During the recent regional conflict, commercial vessels faced repeated attacks in waters surrounding the Gulf and nearby shipping lanes. Consequently, freight and insurance costs surged sharply, raising expenses associated with transporting Middle East crude to major refining markets across Asia and other regions.
Saudi pricing adjustments and stock releases influence oil trading patterns
Saudi Aramco lowered its November crude prices for Asian buyers while increasing prices for northwest Europe and the Mediterranean. The firm priced its Arab Light grade for Asia at $5 a barrel below the Oman and Dubai benchmark average, representing a $3 decrease from October and the widest discount since June 2020. Heavier Saudi crude grades also saw price reductions for Asian purchasers, whereas prices for U.S. clients remained steady.
Monday’s trading activity reflected the resilience of regional exports amid ongoing risks to production and shipping infrastructure. Despite the planned G7 stock release and September’s robust crude shipments, Brent stayed above $100 at 0900 GMT. WTI, after early gains, fell below $91. The global oil market continues to navigate shifts in emergency inventories, Saudi pricing strategies, freight costs, and Middle East crude flows, with security concerns remaining a dominant influence on key export routes.