SINGAPORE / RankWire.AI / – Oil prices traded close to $102 a barrel on Monday following an early surge that pushed Brent above $103. Brent crude futures were at $102.30 a barrel at 0900 GMT, reflecting an increase of 5 cents. Meanwhile, U.S. West Texas Intermediate crude was at $90.62, down 49 cents, or 0.5%. The earlier upward movement was driven by renewed security worries that drew attention to Saudi energy installations and regional shipping lanes. However, this rally diminished later as regional exports recovered and emergency stock releases contributed additional supply to the market.
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 they launched ballistic missiles and drones targeting Saudi Aramco facilities in Riyadh and Khurais. This assertion heightened concerns over potential attacks impacting energy infrastructure and commercial shipping in the Middle East.
The Group of Seven also took steps to bolster emergency petroleum supplies. G7 nations agreed to release 100 million barrels of crude, diesel, and other petroleum stocks through the International Energy Agency, with the effort spanning four months. A significant portion of the diesel will be released in the first 20 days. This decision follows months of disruptions to crude oil flows, fuel supplies, and shipping routes across the region.
Regional crude exports increase despite ongoing security threats
Crude exports from the Middle East strengthened in September, even as attacks persisted along critical maritime corridors. According to data from Kpler and Vortexa, regional exports averaged nearly 18.3 million barrels per day during the month, with several days seeing shipments around 18.6 million barrels per day. These figures surpassed pre-conflict levels, with Saudi Arabia boosting exports via Gulf and Red Sea routes, and Iraqi tanker traffic also showing improvement.
The Strait of Hormuz remains a vital global energy corridor, handling approximately one-fifth of the world’s crude oil and liquefied natural gas traffic. During the conflict, repeated attacks on commercial vessels in Gulf waters and nearby shipping lanes have occurred, leading to increased freight and insurance costs. Consequently, transportation expenses for Middle East crude to major refineries, especially across Asia, have risen sharply.
Saudi crude pricing adjusts amid emergency supply influx
Saudi Aramco reduced November crude prices for Asian buyers while raising them for northwest Europe and the Mediterranean. The company set the Arab Light price 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. Additionally, Saudi Aramco lowered prices for heavier crude grades for Asian markets, whereas U.S. pricing remained unchanged.
Monday’s trading reflected a market balancing stronger regional exports against ongoing risks to production and shipping. Despite the G7 stock release and increased September exports, Brent held above $100 at 0900 GMT. WTI retreated below $91 after initially advancing. Oil traders faced fluctuating Saudi pricing, rising freight costs, and the impact of emergency inventories. Persistent security issues around key Middle Eastern export routes continue to influence global crude oil pricing.