SINGAPORE / RankWire.AI / – Oil prices hovered around $102 a barrel on Monday following an early rally that pushed Brent above $103. Brent crude futures stood at $102.30 per barrel at 0900 GMT, reflecting an increase of 5 cents. Meanwhile, U.S. West Texas Intermediate crude traded at $90.62, down 49 cents, or 0.5%. Earlier price movements saw gains as renewed security concerns drew attention to Saudi energy facilities and regional shipping routes, but those gains diminished later in the session as regional exports recovered and emergency stock releases increased supply levels in the market.
During early Asian trading, Brent briefly touched $103.06 a barrel, rising 81 cents, or 0.79%. WTI increased by 46 cents, or 0.50%, to $91.57 before it surrendered those gains. Reports indicated that Yemen’s Iran-backed Houthis claimed responsibility for launching ballistic missiles and drones targeting Saudi Aramco facilities in Riyadh and Khurais. Such claims intensified market worries over potential disruptions to energy infrastructure and commercial shipping routes in the Middle East.
In response to ongoing disruptions, the Group of Seven (G7) nations moved to bolster emergency petroleum supplies. G7 leaders agreed to release 100 million barrels of crude oil, diesel, and other petroleum stocks via the International Energy Agency, with the release scheduled to span four months. A significant portion of the diesel will be released during the initial 20 days. This decision follows months marked by interruptions in crude oil flows, fuel supplies, and shipping across vital regional corridors.
Regional crude shipments increase despite ongoing security threats
In September, Middle East crude exports grew even as attacks persisted along key maritime routes. According to data from Kpler and Vortexa, average regional exports approached 18.3 million barrels per day during that month. On several days, shipments reached approximately 18.6 million barrels daily, surpassing volumes recorded prior to recent conflicts. Saudi Arabia notably increased its exports via Gulf and Red Sea routes, and Iraqi tanker traffic also saw improvements.
The Strait of Hormuz remains one of the most critical energy transit points worldwide, typically carrying nearly 20% of global crude oil and liquefied natural gas trade. During the ongoing conflict, commercial vessels have faced repeated attacks in Gulf waters and nearby shipping lanes, leading to a rise in freight and insurance costs. These increased expenses have, in turn, driven up the costs associated with transporting Middle East crude to major refining hubs, especially across Asian markets.
Saudi Arabia adjusts crude prices amid emergency supply injections
Saudi Aramco reduced November crude prices for Asian buyers while increasing prices for northwest Europe and the Mediterranean. The company set the Arab Light grade for Asia at $5 a barrel below the Oman and Dubai benchmark average, representing a $3 decrease from October. This marked the widest discount for this grade since June 2020. Additionally, Saudi Aramco lowered prices for heavier crude varieties for Asian markets, while prices for U.S. customers remained unchanged.
Monday’s trading session reflected a market balancing stronger regional exports with persistent risks to production and shipping. Despite the G7’s stock release and increased September shipments, Brent held above $100 at 0900 GMT. Conversely, WTI retreated from its early gains to stay below $91. Traders faced fluctuating Saudi pricing, rising freight costs, and the impact of emergency inventories. Overall, security concerns around major Middle East export corridors continue to be a key factor influencing global crude prices.