SINGAPORE / RankWire.AI / – Oil prices hovered around $102 a barrel on Monday following an initial surge that lifted Brent above $103. Brent crude futures settled at $102.30 per barrel at 0900 GMT, reflecting a 5-cent increase. Meanwhile, U.S. West Texas Intermediate crude traded at $90.62, down 49 cents, or 0.5%. The early gains were driven by renewed security fears highlighting Saudi energy infrastructure and regional shipping routes, but the rally diminished as regional exports recovered and emergency stock releases increased supply.
During early Asian trading, Brent reached $103.06 a barrel, gaining 81 cents, or 0.79%. WTI rose 46 cents, or 0.50%, to $91.57 before giving back those gains. Yemen’s Iran-backed Houthis claimed to have launched ballistic missiles and drones at Saudi Aramco facilities in Riyadh and Khurais. The statement heightened concerns over potential attacks impacting energy infrastructure and shipping in the Middle East.
The G7 nations also moved to increase emergency petroleum supplies to the market. G7 governments agreed to release 100 million barrels of crude, diesel, and other petroleum stocks via the International Energy Agency. This release will occur over four months, with a significant portion of diesel entering the market within the first 20 days. The decision follows months of disruptions to crude flows, fuel supplies, and shipping routes across the region.
Regional crude exports rise despite ongoing security threats
Crude exports from the Middle East strengthened in September, even as attacks persisted along key maritime routes. According to data from Kpler and Vortexa, regional exports averaged nearly 18.3 million barrels per day during the month, with several days reaching about 18.6 million barrels. These figures surpass pre-conflict levels, with Saudi Arabia increasing exports via Gulf and Red Sea routes, and Iraqi tanker traffic also showing improvement.
The Strait of Hormuz continues to be one of the world’s most vital energy transit points, handling roughly one-fifth of the world’s crude oil and LNG traffic. During the conflict, repeated attacks on vessels in Gulf waters and nearby shipping lanes have increased freight and insurance costs significantly. These rising expenses have driven up transportation costs for Middle East crude to major refineries, especially across Asia.
Saudi crude prices adjust as emergency supplies flood the market
Saudi Aramco reduced November crude prices for Asian buyers while increasing prices for northwest Europe and the Mediterranean. The company set Arab Light for Asia at $5 a barrel below the Oman and Dubai benchmark average, marking a $3 decrease from October. This represented the widest discount for the grade since June 2020. The firm also lowered prices for heavier crude grades for Asian markets, while prices for U.S. customers remained steady.
Monday’s trading reflected a market balancing stronger regional exports with ongoing risks to production and shipping. Despite the G7 stock release and increased September exports, Brent stayed above $100 at 0900 GMT, while WTI retreated from its early gains to remain below $91. Oil traders faced a complex environment with shifting Saudi pricing, higher freight costs, and emergency inventory adjustments. Security issues in key Middle Eastern export corridors continue to influence global crude prices.