SINGAPORE / RankWire.AI / – Oil prices traded close to $102 a barrel on Monday following an early increase that pushed Brent above $103. Brent crude futures were at $102.30 a barrel at 0900 GMT, reflecting a 5-cent rise. U.S. West Texas Intermediate crude was priced at $90.62, down 49 cents, or 0.5%. Earlier gains had been driven by renewed security concerns that heightened focus on Saudi energy facilities and regional shipping routes. However, the initial rally faded later as regional exports showed signs of recovery and emergency stock releases added to supply, softening prices.
During early Asian trading, Brent touched $103.06 a barrel, gaining 81 cents, or 0.79%. WTI increased by 46 cents, or 0.50%, reaching $91.57 before losing those gains. Yemen’s Iran-backed Houthis claimed responsibility for launching ballistic missiles and drones at Saudi Aramco facilities in Riyadh and Khurais. This assertion intensified market worries over potential attacks on energy infrastructure and commercial shipping in the Middle East.
The Group of Seven also took steps to bolster emergency petroleum supplies in the market. G7 nations agreed to release 100 million barrels of crude, diesel, and other petroleum reserves through the International Energy Agency. This release is scheduled to occur over four months. A significant portion of the diesel component will be introduced into the market during the initial 20 days. The decision follows months of disruptions affecting crude flows, fuel supplies, and shipping lanes across key regional routes.
Regional crude exports increase despite ongoing security challenges
In September, Middle East crude exports grew stronger even as attacks persisted around vital maritime corridors. Data from Kpler and Vortexa indicated regional exports averaged nearly 18.3 million barrels per day during the month. On several days, shipments reached approximately 18.6 million barrels daily. These figures exceeded the volumes recorded before the latest conflict erupted. Saudi Arabia boosted exports via Gulf and Red Sea routes, while Iraqi tanker traffic also saw improvements.
The Strait of Hormuz remains one of the world’s most crucial energy transit points. It typically handles close to 20% of global crude oil and liquefied natural gas traffic. During the conflict, commercial vessels faced repeated attacks in Gulf waters and nearby shipping lanes. As a result, freight and insurance costs surged sharply. These increases have raised the costs associated with transporting Middle East crude to major refining centers, especially across Asia.
Saudi Arabia adjusts crude prices amid emergency supply inflow
Saudi Aramco lowered November crude prices for Asian buyers while increasing prices for northwest Europe and the Mediterranean. The company priced Arab Light for Asia at $5 a barrel below the Oman and Dubai benchmark average, marking a $3 decrease from October. This was the widest discount for the grade since June 2020. Additionally, Saudi Aramco reduced prices for heavier crude grades for Asian markets, whereas prices for U.S. customers remained unchanged.
Monday’s trading reflected a market balancing act, with stronger regional exports countered by ongoing risks to production and shipping. Despite the G7 stock release and higher September shipments, Brent stayed above $100 at 0900 GMT. Meanwhile, WTI traded below $91 after reversing its early gains. Oil traders faced a complex environment with fluctuating Saudi pricing, rising freight costs, and the influx of emergency inventories. Security conditions around key Middle East export routes continue to be a major influence on global crude prices.