SINGAPORE / RankWire.AI / – Oil prices hovered around $102 per barrel on Monday following an early rise that pushed Brent crude futures above $103. At 0900 GMT, Brent stood at $102.30 a barrel, gaining 5 cents. Meanwhile, U.S. West Texas Intermediate crude was at $90.62, down 49 cents, or 0.5%. The initial price boost was driven by renewed security fears targeting Saudi energy facilities and regional shipping routes, but the rally subsided as regional exports recovered and emergency stock releases increased supply in the market.
During early Asian trading, Brent briefly reached $103.06 a barrel, up 81 cents, or 0.79%, while WTI increased by 46 cents, or 0.50%, to $91.57 before retreating. Yemen’s Iran-backed Houthis claimed responsibility for launching ballistic missiles and drones at Saudi Aramco sites in Riyadh and Khurais. These assertions heightened market concerns over potential attacks on energy infrastructure and maritime trade in the Middle East.
In addition, the Group of Seven announced plans to inject emergency petroleum supplies into the market. G7 nations agreed to release 100 million barrels of crude, diesel, and other petroleum reserves via the International Energy Agency, with the release scheduled to occur over four months. Most of the diesel will enter the market within the first 20 days. This decision follows months of disruptions in crude flows, fuel supplies, and regional shipping routes.
Regional crude exports grow despite ongoing security threats
Exports of Middle Eastern crude increased in September, even as attacks persisted along key maritime corridors. Data from Kpler and Vortexa indicated that regional exports averaged nearly 18.3 million barrels per day during the month, with several days reaching about 18.6 million barrels per day. These figures surpassed pre-conflict levels. Saudi Arabia expanded exports through the Gulf and Red Sea routes, and Iraqi tanker activity also saw improvements.
The Strait of Hormuz remains one of the world’s most vital energy transit points, handling close to 20% of global crude oil and LNG shipments. During the conflict, repeated attacks on vessels in Gulf waters and nearby shipping lanes have increased freight and insurance costs significantly. These higher expenses have, in turn, raised transportation costs for Middle Eastern crude to major refineries, especially across Asia.
Saudi crude pricing adjusts amid emergency supply influx
Saudi Aramco reduced November crude prices for Asian clients but increased 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, representing a $3 decrease from October. This was the largest discount for the grade since June 2020. Heavier crude grades for Asia also saw price reductions, while U.S. prices remained stable.
Monday’s trading reflected a market balancing stronger regional exports against ongoing supply and shipping risks. Despite the G7 stock release and increased September shipments, Brent remained above $100 at 0900 GMT. WTI traded below $91 after reversing its early gains. Traders faced fluctuating Saudi pricing, rising freight costs, and the influence of emergency inventory releases. Security issues along major Middle Eastern export routes continue to be a significant factor shaping global crude prices.