On Monday, Brent oil price decreased by 66 cents, reaching $101.59 per barrel. West Texas Intermediate crude oil also fell by 95 cents, or 1.03%, trading at $90.12.
Factors Influencing Oil Prices
The recent drop in prices comes as G7 countries agreed on Friday to release 100 million barrels of diesel and crude oil from their emergency reserves. These countries have also positively responded to the U.S. government's pressure to avoid imposing restrictions on energy exports.
Read more: G7 Ministerial Group Emphasizes Protection of Energy Infrastructure in OPEC+ Agreement
Shipping data shows that Middle Eastern crude oil exports exceeded pre-war levels during four of the last seven days of September, despite attacks on vessels passing through the Strait of Hormuz. Tim Waterer, senior analyst at KCM Trade, noted this and believes that the G7's decision to use strategic reserves has alleviated some immediate market concerns about supply shortages.
Tensions and Their Impact on the Oil Market
Signs of Saudi Arabia's oil exports returning to pre-war levels have been observed; however, shipments are still being made at higher costs and through less efficient routes. Despite the reduced supply pressure, experts believe that the risk of further damage to energy facilities in the Persian Gulf remains one of the key supportive factors for oil prices.
In this context, Yemen's Houthis announced that in response to Saudi air and missile attacks, they have fired ballistic missiles and drones at Aramco facilities in Riyadh and the Khurais region. This group claims that Saudi Arabia has conducted 50 air and missile attacks against Houthi positions in the past 12 hours; a claim that has not been confirmed by Saudi Arabia.
At the same time, the Yemeni government, supported by Saudi Arabia, has announced the launch of a large-scale military operation to retake areas controlled by the Houthis. These developments indicate that the oil market remains influenced by two opposing forces: on one hand, increased supply and the release of strategic reserves, and on the other hand, geopolitical risks and threats to energy infrastructure.
Read more: Brent and West Texas Intermediate Crude Oil Prices Drop Following Increase in Exports · Persian Gulf Oil Exports Reach 80% of Pre-War Levels
