SINGAPORE / RankWire.AI / – Oil prices remained close to $102 per barrel on Monday, after Brent crude briefly exceeded $103 in early trading sessions. At 0900 GMT, Brent crude futures rose by 5 cents to reach $102.30 a barrel. Meanwhile, U.S. West Texas Intermediate crude decreased by 49 cents, or 0.5%, settling at $90.62. Both contracts experienced declines of over 1% earlier, as increased Middle East exports contributed to supply growth amid ongoing security concerns across regional energy infrastructure.
In early Asian trading, Brent climbed to $103.06 a barrel, up 81 cents, or 0.79%. WTI advanced by 46 cents, or 0.50%, reaching $91.57. These initial gains followed a statement from Yemen’s Iran-backed Houthis claiming they launched ballistic missiles and drones targeting Saudi Aramco facilities in Riyadh and Khurais. The announcement shifted focus back onto Saudi oil infrastructure after a series of recent attacks impacted energy facilities and commercial shipping routes throughout the region.
The Group of Seven nations also took measures to bolster supply through the release of emergency petroleum reserves. G7 governments agreed to distribute 100 million barrels of crude, diesel, and other petroleum stocks via the International Energy Agency. The coordinated effort will span four months, with a significant portion of diesel planned for the initial 20 days. This move follows months of disruptions affecting crude oil flows, refined fuel supplies, and shipping routes across vital Middle East energy corridors.
Middle East crude exports rebound despite ongoing security threats
Despite persistent security risks along key shipping lanes, Middle East crude exports showed a strong recovery in September. Data from Kpler and Vortexa indicated regional crude shipments averaged approximately 18.3 million barrels per day during the month. On several days, flows even exceeded 18.6 million barrels per day, surpassing pre-conflict levels. Saudi Arabia increased its shipments through Gulf and Red Sea routes, while Iraqi tanker activity also intensified in September as regional crude movements picked up.
The Strait of Hormuz continues to play a crucial role in global energy trade, handling nearly 20% of worldwide crude oil and liquefied natural gas traffic. During the recent regional conflict, commercial vessels operating in the Gulf and surrounding shipping lanes faced multiple attacks. As a result, freight and insurance costs surged sharply, raising expenses for transporting Middle East crude to major refining markets across Asia and other regions.
Saudi pricing adjustments and emergency reserves influence oil trading patterns
Saudi Aramco lowered November crude prices for Asian buyers while increasing prices for northwest Europe and the Mediterranean. The company priced its Arab Light grade for Asia at $5 a barrel below the Oman and Dubai benchmark average, marking a $3 reduction from October and the largest discount for this grade since June 2020. Heavier Saudi crude grades also saw price decreases for Asian customers, whereas prices for U.S. buyers remained steady.
Monday’s trading sessions reflected the ongoing rebound in regional exports, despite continued threats to production and shipping infrastructure. Brent maintained levels above $100 at 0900 GMT, even with the G7’s announced stock release and the robust September crude shipments. WTI traded below $91 after losing its early gains. The global oil market continued to adjust to shifts in emergency inventories, Saudi pricing strategies, freight costs, and Middle East crude flows, with security concerns remaining a dominant factor influencing key export routes.