On Monday, the Brent oil price reached 101 dollars and 59 cents per barrel, indicating a decrease of 0.65%, equivalent to 66 cents. Meanwhile, the price of West Texas Intermediate crude oil also fell by 1.03% to 90 dollars and 12 cents. These developments occur as the oil market is influenced by various factors.
Impact of releasing oil reserves and increasing exports
The G7 countries have recently agreed to release 100 million barrels from their emergency reserves. This action was taken under pressure from Donald Trump, the President of the United States, and aims to alleviate pressure on prices. At the same time, crude oil exports from Middle Eastern countries have increased, and shipping data shows that crude oil exports from this region reached pre-war levels in four out of the last seven days of September.
Read more: Increase in oil supply and logistical challenges in oil fields
Security concerns and impacts of the Gulf War
Analysts believe that concerns about damage to energy infrastructure in the Gulf still exist. Tim Waterer, a senior analyst at KCM Trade, noted that the G7's decision to use strategic reserves has alleviated some of the market's immediate concerns about supply. However, ongoing attacks on commercial vessels and geopolitical tensions in the region, especially following Saudi airstrikes in Yemen, could impact oil prices.
The Houthis in Yemen have also responded to Saudi attacks by launching ballistic missiles and drones towards Aramco facilities in Riyadh and the Khurais region. Meanwhile, the Yemeni government has announced that it has launched a large-scale military operation to retake areas under Houthi control.
Additionally, Saudi Aramco unexpectedly reduced its official selling price for crude oil to Asia for November to the lowest level in six years. These pricing changes may indicate a market reaction to the ongoing tensions and developments in the Gulf.
Analysts at ING believe that the Brent oil price remains above 100 dollars per barrel. This situation reflects the continuation of geopolitical tensions and increased attacks on commercial vessels in the Gulf, which could have significant implications for the global oil market.
Read more: Decrease in Brent and West Texas crude oil prices to 101.59 and 90.12 dollars respectively · Saudi Arabia reduced the price of Arab light crude oil for Asian customers
